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Bank of America Forecasts EUR/USD to Reach 1.15 by Year-End, 1.20 in 2027
Summary
Bank of America analysts project the euro will strengthen against the U.S. dollar to 1.15 by the end of 2026 and 1.20 by late 2027, citing an outlook for modest dollar weakness.
Bank of America has released a new forecast projecting the Euro to U.S. Dollar (EUR/USD) exchange rate will climb to 1.15 by the end of 2026. The bank anticipates the currency pair will strengthen further to 1.20 by the end of 2027.
Details of the Forecast
The projections were published in a September 8, 2026, report titled "G10 FX Back to School: Unpacking the USD." According to the report, Bank of America's analysts expect the U.S. dollar to hold near its current levels against most G10 currencies, with the exception of the Japanese yen, through the end of the year.
Looking ahead to 2027, the bank's base case is for a modest weakening of the dollar against its major developed-market peers. The report also included minor revisions to forecasts for Southern Hemisphere currencies, such as the Australian and New Zealand dollars, as well as Nordic currencies.
AdComparison with Market Consensus
Bank of America's year-end 2026 target for EUR/USD is slightly more bearish on the euro than the market average. The 1.15 forecast is below the Bloomberg market consensus median of 1.17.
However, the bank's longer-term view is more bullish than the consensus. Its target of 1.20 for the end of 2027 is slightly above the market's median forecast of 1.19. This suggests a view that euro strength will accelerate more than currently anticipated by the broader market over the next 15 months.
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