Bank of America Global Research discusses its latest forecasts for key G10 GX pairs.

"We look for USD to stay on the stronger side. We keep our EURUSD forecast for this year at 1.05, still below the consensus forecast of 1.10. For next year, we keep our forecast at 1.15, going to 1.20 in 2024. Our assumption is that FX moves back to equilibrium in the long term, which in the case of EURUSD is between 1.20-1.25. However, uncertainty remains high beyond this year. So, we assume that the USD will gradually weaken back to equilibrium, reaching it only in 2024, but strong for now," BofA notes. 

"We did make a wide variety of USD-positive revisions in G10, albeit not changing our general outlook. We raised our USD-JPY profile, although we still look for some downside, with a new year-end forecast of 127. We also raised our EUR-GBP profile, resulting in a lower GBP-USD forecast with our EUR-USD views unchanged," BofA adds.