- Analytics
- News and Tools
- Market News
- EUR/USD: Bearish year-end, bullish next year; where to target after the rally? - BofA
EUR/USD: Bearish year-end, bullish next year; where to target after the rally? - BofA
eFXdata reports that Bank of America Global Research discusses EUR/USD outlook and now targets the pair at 1.16 by end of Q3 and at 1.14 by year-end.
"Following the strong EURUSD rally during the summer, which was mostly a USD sell-off, we see downside EURUSD risks for the remaining of the year, mostly driven by a USD correction higher. EUR has remained broadly stable with respect to non-USD currencies. The market remains long EUR, with some indicators suggesting historically stretched positioning, particularly for real money," BofA notes.
"We are concerned the consensus is: too optimistic on the global economy; too optimistic on a vaccine; too pessimistic on the Covid-19 situation in the US compared with that in Europe; and complacent on the US elections.
In the long term: we disagree with the view that the EU Recovery Fund sets a precedent; we are concerned that the consensus is focused too much on the increasing US debt and is complacent about similar or even worse trends in the rest of the world, and in the Eurozone periphery in particular; the consensus expects the Fed to keep policies loose for a long time, but may be missing a possibility that the ECB may need to keep policies loose for even longer," BofA adds.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
