The first half of the year was certainly turbulent. Was does the second half entail?
The team at Bank of America Merrill Lynch lay out their thoughts in the video below, which includes the option of EUR/USD parity:
Here is their view, courtesy of eFXnews:
In its mid-year press conference in New York today, Bank of America Merrill Lynch outlines its core views on Greece, rates, equities, the Fed, ECB QE, EUR/USD, and other key market topics. Here are a selection of these topics as covered by eFXnews along with a short video for the event.
Greece: BofA thinks that things will get worse before they get better. BofA sees increasing risk of implementation of capital controls and default. A potential messy and protracted divorce is the most negative EUR scenario, according to BofA.
Fed: Better-than-expected May data has led BofA US economics team to maintain their view of a September Fed hike.
Bunds: BofA thinks that the recent Bund sell-off is overdone and expects demand to revive at current levels.
EUR/USD: BofA is targeting parity before year-end.
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