Wednesday saw Bank of America...........>

EURO-DOLLAR: Wednesday saw Bank of America Research note that "though EUR/USD is

undervalued by about 10%, according to our estimates, we see it weakening

further in the rest of the year. We forecast EUR/USD at 1.02-1.05, with risks to

the downside. EURUSD is down 3.4% this year, but has fluctuated between 1.069

and 1.145. EUR has been supported by the unwinding of the carry trades, as a

funding currency early in the crisis, and more recently during the market rally

following strong global policy stimulus and the drop in COVID-19 infection rates

during the lockdown. However, we expect EUR/USD to weaken in the months ahead,

given: a weaker global outlook, a more severe Eurozone recession, a weaker

Eurozone macro policy response, periphery sovereign risks, low oil prices, and a

long EUR market position. We would be wrong and EUR/USD would strengthen if a

cure or vaccine for COVID-19 were to be found soon, as the global outlook would

improve substantially, or if the Europeans were to mutualize a substantial part

of the increase in the government debt-through a Eurobond/Corona bond, but this

seems unlikely."