BoA see downside risk for the euro over the rest of 2020
I posted earlier on GS who see the USD downtrend remaining:
BoA are on the other side.
- "Following the strong EURUSD rally during the summer, which was mostly a USD sell-off, we see downside EURUSD risks for the remaining of the year, mostly driven by a USD correction higher"
- weakening global risk sentiment to be a constraint on the EUR, but a positive for the USD
- says the consensus is too optimistic on the global economy
- and also too optimistic on coronavirus vaccine prospects
- too pessimistic on the COVID-19 situation in the US compared with that in Europe
BoA end of year forecasts for EUR/USD is 1.14 (previously were at 1.08)