EUR/USD: Projections revised upwards, from 1.08 to 1.15 this year - BAML

Analysts at BofA Merrill Lynch are revising their EUR/USD projections upwards, from 1.08 to 1.15 this year and from 1.15 to 1.19 next year.

Key Quotes

“We revise our EUR/USD projections upwards, following the recent strong appreciation, but retain a bearish path for year-end. We now forecast EUR/USD at 1.15 by end-2017 and 1.19 by end-2018, which is still below current levels for both years. We have been forecasting EUR/USD at 1.08 by end-2017, appreciating to 1.15 in 2018 as the ECB tapers QE.”

“We remain bearish EUR/USD by year-end, as the cross has overshot and we see asymmetric risks from central bank surprises.”