BofA projects EUR/USD to fall to 1.14 by end of Q2 2026, maintaining a bearish near‑term view.
The outlook assumes oil at $100/barrel, Dutch TTF gas at €90/MWh, and euro‑area CPI averaging 3.3% in 2026.
BofA expects ECB to hike rates twice (June, July) while the Fed may cut twice (Sept, Oct) or possibly skip cuts.
Longer‑term forecast sees EUR/USD at 1.20 by year‑end, conditional on no Fed hikes, normalised energy prices and converging growth.