What is the quarterly outlook for EUR/USD and USD/JPY?
Here is their view, courtesy of eFXdata:
Bank of America Global Research targets EUR/USD at 1.18, 1.16, and 1.15 by end of Q2, Q3, Q4 respectively. BofA also targets USD/JPY at 107, 110, and 113 by end of Q2, Q3, Q4 respectively.
“In the case of EUR in particular, we see two key drivers for the EUR in the short term and two in the long term….Although these drivers, as well as USD forces could go either way, we keep a bearish EUR bias. The main reason is expectations for a weaker Eurozone recovery compared with the US, which eventually should be consistent with diverging monetary policies.
EURUSD is somewhat above our 2Q forecast, but we stick to 1.15 forecast by year-end. The consensus has been slowly adjusting lower and is now close to current spot. Our year-end USDJPY forecasts remains 113.
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