Rasied target from 1.0200
Bank of America strategist raises the 3rd quarter EURUSD forecast.
- Sees EURUSD at 1.08 by the end of third-quarter 2020.
- Prior estimate was 1.02
Athanasios Vamvakidis, head of G 10 currency strategy said:
- Although our Q3 target will represent some downside, that downside is likely be more limited in the near term
- ECB easing has been positive for the EUR by supporting the Eurozone economy and also pushing against market concerns that the ECB may not be able to do what it takes
- similarly on fiscal policy European moves on stimulus and recovery fund proposals are positive and supporting for the EUR in the near term
BofA predicts that the EURUSD will and 2020 at 1.05, but rebound in 2021 to 1.1500.
- After broader dollar bullishness this year we expect EURUSD to rise next year as part of a recovery that may more convincingly take hold
The EURUSD is currently trading at 1.1214. It traded as low as 1.08698 on May 25. Since then the pair search to the 1.1421 level. The last 7 days has seen a corrective move toward the 38.2% retracement of the move up from the May 25 low at 1.12105. The low price today reached 1.1202. We are currently trading at 1.12137.
