Bank of America Still Look For Slightly Lower USD Into Year End

Bank of America write “markets have turned more hopeful around US disinflationary trends.”

• “Both cooler inflation numbers as well as more modest labor market data have come in, but policymakers are looking for additional data to confirm that the recent disinflationary figures are more of a trend than a simple one-off.”
• “Consequently, our macro views remain the same.”
• “While our US economics team still expects one Fed rate cut this year in December, we continue to look for a modestly softer dollar USD focused on the end of the year and into 2025.”
• “Our EUR/USD forecast for end-2024 remains 1.12, and we do not make any other forecast changes in G10 FX.”