EUR/USD Forecast: Bank of America Unveils Critical Near-Term Outlook Amid Market Volatility - Dailyhunt

What the desk is arguing

The desk believes that Bank of America's latest revision on EUR/USD reflects broader market uncertainties influenced by economic data and geopolitical tensions. The forecast indicates a bearish sentiment, suggesting that despite the EUR currently trading at 1.1500, there remains pressure on the euro, particularly against a strong dollar.

Moreover, this bearish outlook from BofA could serve as a signal for other market participants to reassess their positions in EUR/USD. While many firms have shown more optimism with targets above the current spot, the adjustment from BofA may push others to follow suit, aligning with a more defensive market sentiment.

Where it sits in our coverage

Our current consensus target for EUR/USD is 1.2200 for December 2026, with a notable spread among participating firms reflecting divergent views. The majority of forecasts place the pair notably higher than its current spot, suggesting widespread expectation of euro strength over the medium term.

Specifically, notable firms have provided the following December 2026 targets:

• JPMorgan: 1.2000
• Goldman: 1.2500
• Deutsche Bank: 1.2500

How other firms see it

Many firms have maintained a more bullish outlook on the euro compared to Bank of America's conservative adjustments. Firms such as Goldman and Deutsche Bank are positioned with higher forecasts, indicating a belief in euro appreciation going into late 2026.

In contrast, BofA stands apart with its cautious stance, signaling potential divergence in market sentiment:

• Goldman: 1.2500 (Dec-26)
• Deutsche Bank: 1.2500 (Dec-26)
• JPMorgan: 1.2000 (Dec-26)