Bank of America has lowered its forecast on EUR/USD, not liking the dollar as much either

Bank of America forecasts for EUR/USD:

• 1.12 at the end of 2024
• 1.17 at the end of 2025 (from previously projecting 1.20)
• 1.20 in 2026

BoA citing:

• Federal Reserve to cut, but more gradually than previously thought
• Say that with persistent inflation it’ll be a shallow easing cycle

Despite the timing of its EUR/USD forecast B of A says its staying more bearish on the USD than the consensus is.

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On Thursday US time we got some signs of erosion for USD bullishness:

• Forexlive Americas FX news wrap: US housing starts plunge

This article was written by Eamonn Sheridan at www.forexlive.com.