Bank of America Sees Stronger Dollar, Cuts Euro Forecast
JH Kim
Summary
- Bank of America said it expects a stronger dollar as the U.S. economy remains resilient and the Fed maintains a hawkish stance.
- Bank of America said it expects the euro-dollar (EUR/USD) exchange rate to reach 1.12 by the end of the third quarter and 1.15 by year-end.
- The bank said downside pressure on the euro could persist if the Fed moves ahead with additional tightening.
Forecast Trend Report by Period
Bank of America sees the dollar strengthening as the U.S. economy remains resilient and the Federal Reserve maintains a hawkish stance.
Citing Walter Bloomberg on June 25, the bank lowered its euro outlook and forecast the euro-dollar exchange rate at 1.12 by the end of the third quarter and 1.15 by year-end.
Bank of America said U.S. economic data have remained stronger than expected and that the Fed’s hawkish monetary policy will support the dollar.
It added that downside pressure on the euro could persist if the Fed tightens policy further.
JH Kim
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