EUR/USD seen weaker at 1.1200 in Q3 2018 - BAML

Dhwani Mehta FXStreet

In its latest client note, the strategists at Bank of America Merrill Lynch (BAML) expect the EUR/USD pair to fall further in the coming quarter amid looming trade war concerns and strengthening US economy.

Key Quotes:

EUR/USD seen at 1.12 in Q3 and 1.14 in Q4 versus 1.20 seen previously.

Trade tensions have obscured "relatively solid U.S. macro outlook" for both the near-term and medium-term.

Trade uncertainty is more negative for Eurozone economy.

U.S. benefits from "massive fiscal stimulus".

Stronger U.S. growth will keep Fed on a hiking cycle supporting USD.

U.S. corporate repatriation from overseas could also be a driver.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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