Bank of America economists at Bank of America Global Research expected, in a research note issued today, Friday, that the EURUSD pair will remain under pressure during the first half of this year, before the euro-dollar recovers towards the 1.10-point level by the end of this year.
Experts at the US Bank noted that they warn that the market has already run into it again, pricing in early US Federal Reserve rate cuts, and the repricing is likely to affect EURUSD in the short term.
Also in this context, Bank of America experts suggested that the euro-dollar would stabilize at the level of 1.05 during the first half of this year, then rise to 1.10 points by the end of the year, then to the level of 1.15 points by the end of next year, and despite that, there are some risks that The European single currency, led by the banking sector crisis, the ongoing war in Ukraine and potential market pressure on Italy, is threatened by the European Central Bank’s tightening of monetary policy.
Earlier, analysts at the US investment bank Goldman Sachs revised their expectations for the movements of the EURUSD currency pair over the coming months, as the US bank’s experts revised their estimates for the euro-dollar pair for a period of 3 and 6 months, to record 1.05 compared to 1.02 previously expected.
The bank’s analysts attributed the reason for revising their estimates of the euro-dollar’s movements to the weak expectations of economic growth in the United States, with the tightening of monetary policy in a way that is not effective enough to raise the dollar in the coming period.