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Bank of America Forecasts EUR/USD to Reach 1.15 by Year-End 2026
Summary
Bank of America has set a year-end 2026 target of 1.15 for the EUR/USD currency pair, projecting a modest depreciation of the U.S. dollar to resume in 2027.
Bank of America projects the euro will strengthen against the U.S. dollar, forecasting a EUR/USD exchange rate of 1.15 by the end of 2026. The firm's outlook, detailed in a recent report, anticipates a broader, modest depreciation of the dollar beginning in 2027.
Key Projections
In a research note titled "G10 FX back-to-school: dollar unloaded" published on September 8, 2026, the bank outlined its currency projections for the next 15 months. The forecast extends to the end of 2027, with Bank of America targeting a EUR/USD rate of 1.20.
These projections place the bank's outlook slightly more bearish on the euro for the near term compared to the market consensus, but more bullish over the longer term.
- Year-End 2026: BofA forecasts 1.15, compared to a Bloomberg consensus median of 1.17.
- Year-End 2027: BofA forecasts 1.20, slightly above the consensus median of 1.19.
AdBroader Dollar Outlook
According to the bank, the U.S. dollar is expected to remain near its current levels against most G10 currencies through the remainder of 2026, with the Japanese yen cited as a potential exception. This period of relative stability is expected to give way to a modest depreciation in 2027, which would support a stronger euro.
The firm stated it made minimal adjustments to its overall currency profiles but did revise its forecasts for Antipodean and Nordic currencies. For investors and market participants, this forecast signals a view that the peak of U.S. dollar strength may be passing, with a gradual shift in favor of the common European currency over the medium term.
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