FXStreet (Barcelona) – Policy divergence due to an expected September Fed rate hike along with the ECB QE will drag EUR/USD lower towards parity by year-end, according to BofA-Merrill Lynch.
Key Quotes
“We project that divergence of monetary policies will drive EUR/USD to parity by the end of the year. We expect the first Fed rate hike in September. Persistently low Eurozone inflation suggests to us that it is more likely than not that ECB QE will continue even after September 2016. The Greek crisis poses downside EUR risks in the short term.”
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