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LIVE DESK·Global markets desk·Last updated 14s ago
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Bank of America Forecasts Lower EUR/USD Through Q3 on Fed Outlook

Bank of America expects the euro to weaken against the US dollar through the third quarter, driven by the outlook for Federal Reserve monetary policy.

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Sophie Laurent · FX & Rates Desk · 18 Aug 2026 · 1 min read
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Bank of America Forecasts Lower EUR/USD Through Q3 on Fed Outlook

Bank of America has updated its foreign exchange outlook, projecting a lower EUR/USD exchange rate through the third quarter of the year. According to the institution, the anticipated downward trajectory for the currency pair is primarily anchored in the evolving policy outlook for the US Federal Reserve.

Market participants continue to monitor central bank expectations and interest rate differentials between the United States and the eurozone, which heavily influence the valuation of the euro relative to the dollar.

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
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Written by
Sophie Laurent
FX & Rates Desk

Sophie covers currency markets and central bank policy across Europe, with a focus on how rate decisions ripple through FX pairs. She has been tracking the ECB's policy path since the start of the current easing cycle.

More from Sophie Laurent →
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