Bank of America anticipates that the EUR/USD will climb to 1.10 by the close of 2025, surmounting the consensus expectation of 1.05.

Important Forecast Highlights

Near-Term USD Strength: The US dollar is projected to maintain its strength in Q1 2025 before undergoing a gradual depreciation.
Potential Upsides for the Euro: Factors like the German elections, EU reforms, and increased military spending could propel the euro’s value.
USD Pricing Risks: Analysts warn that the perceived strength of the USD may be overstated, with inflation and fiscal policy representing key risk elements.
Trade and Capital Flow Effects: A robust dollar may hinder capital flows and negatively influence US equity performance.

Market Trends for EUR/USD

• Forex Daily API: Get updated exchange rates for EUR/USD.
• Economics Calendar API: Stay informed about major economic announcements impacting forex markets.

Final Thoughts

BofA’s forecast of 1.10 for EUR/USD demonstrates confidence in euro stability against anticipated dollar weaknesses. Nevertheless, prevailing risks tied to US policy changes and European economic conditions will remain crucial to market movements.