Bank of America Global Research maintains a bearish bias on EUR/USD expressing this view via a tactical short exposure.

"We remain tactically short EURUSD via a 1.15/1.13 put spread exp 20 Aug 2026 . Risks are to this trade recommendation include soft US data and a faster-than-expected normalization in energy flows," BofA notes.

"We expect relative data to continue weighing on EURUSD over the summer and see room for the Fed to be repriced higher. EUR, in our view, has not materially benefited from the ECB hiking narrative, although the eventual FX impact will depend on inflation persistence and the Fed's stance. Belly real yield differentials remain particularly informative. In addition, while EURUSD sentiment and positioning have moderated meaningfully, neither has reached the extremes observed in 2022 and 2024," BofA adds.