VIEW: Thursday saw Bank of America......>

EURO-DOLLAR: VIEW: Thursday saw Bank of America Research raise their near-term

EUR/USD forecast. They "now look for $1.08 for the end of Q3, prev. $1.02, as

the risk rally across mkts & rebound in equities has softened USD. We do not

make changes to our longer-term forecasts, however, and the overall bearish

macro tone of our outlook remains. ECB easing has been +ve for the EUR through

supporting the Eurozone econ & also pushing against concerns that the ECB may

not be able to do what it takes. Similarly on fiscal policy, European moves on

stimulus & the recovery fund proposals were +ves & supportive for the EUR in the

near-term. End-year target remains $1.05; next year target still $1.15. After

broader USD bullishness this year, we exp. EUR/USD to rise next year, as part of

a recovery that may more convincingly take hold. Our target of $1.15 for the end

'21 marks our exp. that the recovery will still be incomplete for some time,

given that our estimates for long-run EUR/USD equilibrium in the low-to-mid

1.20s. Aside of course from the evolution of COVID-19, we are concerned about a

possible weakening of the EU Recovery Fund. We also remain concerned about

unsustainable peripheral debt levels when the PEPP program ends."