Bank of America Global Research discusses EUR/USD outlook and targets the pair at 1.05 by year-end but flags a scope for a move to parity over the coming months.
"The question we have been getting from investors this week is whether EURUSD could go to parity. We have already argued that EU sanctions on energy from Russia could indeed push EURUSD down to parity. A sharp slowing in China, a real risk indeed, could be another reason,"BofA notes.
"A sharper risk-off market correction, because of a further escalation of the war in Ukraine, or another reason, as long as it does not stop the Fed from its tightening plans, also qualifies. For now, these are all risk scenarios for us, but we continue to see USD risks to the upside for the rest of the year," BofA adds.