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Felicia Tan
June 19 18:38

Bank of America predicted USD/EUR exchange rate until the end of 2021

BofA raised its forecast for euro/dollar in Q3, but maintained its forecast for the end of 2020.
Strategists of Bank of America raised the forecast for the euro / dollar
(EUR / USD) in the third quarter, but maintained the forecast for the recovery of the dollar in late 2020.
BofA forecasts EUR/USD at 1.08 by the end of the third quarter of 2020 compared to 1.02 earlier. The pair is traded at 1.1225.
Although our 3Q target still suggests some decline, it is likely to be more restrained in the near term, beli evesAthanasios Vamvakidis, head of G-10 currency strategy at BofA, in a note to clients on Thursday.
He noted that ECB monetary easing was positive for the euro, as it will help support the economy of the euro zone, as well as will dispel the market fears that the ECB is already unable to do anything. Similarly, in the European fiscal policy, the stimulus steps and the proposal for a recovery fund were positive and will support the euro in the near term.
BofA forecasts that the euro/US dollar exchange rate will end in 2020 at 1.05 and end in 2021 at 1.15.
Consensus in Bloomberg survey for EUR/USD: end of 2020: 1.13; end of 2021: 1,17.