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Investing.com - Bank of America has maintained its forecast for slight U.S. dollar downside despite numerous market challenges, according to a report released Tuesday.
The bank cited several ongoing concerns including renewed tariff worries, challenges to Federal Reserve independence, potentially unsustainable U.S. fiscal policy, and geopolitical tensions in the Middle East as factors affecting currency markets.
BofA specifically maintained its EUR/USD forecasts at 1.17 for end-2025 and 1.20 for end-2026, noting that the U.S. dollar has become "less undervalued" according to their analysis.
The financial institution’s G10 foreign exchange forecasts largely remain unchanged as markets move into the latter half of summer trading.
The only revisions to the bank’s currency outlook since last month were adjustments to Scandinavian currencies, while all other major currency pair forecasts were maintained at previous levels.
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