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12 Mar 2015
EUR/USD at parity by end-2015 – BAML
FXStreet (Barcelona) - The BofA-Merrill Lynch Team, revises their forecast for EUR/USD, expecting the pair to fall to 1.0 levels by end-2015, with risks tilted towards an earlier move.
Key Quotes
“We are revising our EUR/USD projections, expecting parity by the end of 2015.”
“The current trend poses negative risks to our projections, as EUR/USD could reach parity in 2Q if this pace continues.”
“However, further USD appreciation could also raise concerns about the US recovery, possibly affecting the Fed's timing and pace of tightening and posing positive risks to our projections."
“Our forecast changes are consistent with our expectation that the ECB's bond purchases will generate EUR negative flows. However, further USD appreciation could also fuel recoupling concerns.”
Key Quotes
“We are revising our EUR/USD projections, expecting parity by the end of 2015.”
“The current trend poses negative risks to our projections, as EUR/USD could reach parity in 2Q if this pace continues.”
“However, further USD appreciation could also raise concerns about the US recovery, possibly affecting the Fed's timing and pace of tightening and posing positive risks to our projections."
“Our forecast changes are consistent with our expectation that the ECB's bond purchases will generate EUR negative flows. However, further USD appreciation could also fuel recoupling concerns.”