Bank of America expect EUR/USD below 1.10 in June and parity at the end of the year

Forex strategists at Bank of America noted that the recent growth of the euro is a sign that the markets no longer pay particular attention to economic data or actions taken from central banks. For investors more important question is what will make regulators in the future?

At present risks to EUR/USD pair appear balanced, comment from Bank of America, but added that they still remain bearish in the medium term and intend to use raise of the pair to open short positions. Experts predict that the Fed will raise rates in June and the difference in monetary policies of the US and the Eurozone will reflect in exchange rates.

Against this background, Bank of America predict a decline of EUR/USD below 1.1000 in June and parity at the end of the year. Strategists added that the danger for Britain to withdraw from the European Union threatens not only the pound but also the single currency. Short positions in EUR/USD look more attractive option for hedging risk than sales of GBP/USD.