Bank of America Global Research discusses EUR/USD outlook and targets after the pair hit BofA's year-end forecast at 1.05.
"We keep our baseline EUR-USD outlook the same, although we have recently moved close to our end-of-year forecast of 1.05...We expect the EUR to gradually strengthen next year, to 1.15, and then to 1.20 in 2024, consistent with long-term equilibrium," BofA notes.
"Despite having been right in our EUR forecasts this year, we admit that the outlook ahead is uncertain, with many moving parts, related to the economy, policies, politics and geopolitics. Despite EUR weakness this year, we note that positioning remains long, suggesting a market that remains bullish on the EUR. Ultimately, EURUSD is already at our Q2 forecast and not far from our H2 out-of-consensus forecast of 1.05. It is somewhere in the middle of G10 in performance so far this year, together with GBP, with the USD at the top and the JPY at the bottom," BofA adds.