INDYFINANCE
2026-10-03 UTC
 
MARKET REPORTBEARISH

BofA Calls for Euro to Weaken to $1.15 by Year-End

The bank's forecast implies further dollar strength against the euro through the end of 2026.

Central BanksBanking & FinanceEuropeEURUSD
Executive takeaway

Bank of America projects the euro will fall to $1.15 against the dollar by the end of 2026, citing broader market risks.

Newsroom graphic
EUR/USD's Recent Path Toward BofA's 1.15 Call. This shows the euro's trajectory against the dollar in recent months, letting readers gauge how much further decline BofA's year-end 1.15 forecast implies from current levels.

EUR/USD's Recent Path Toward BofA's 1.15 Call

This shows the euro's trajectory against the dollar in recent months, letting readers gauge how much further decline BofA's year-end 1.15 forecast implies from current levels.

Live EUR/USD exchange rate.

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<figure><a href="https://www.indy.finance/news/bofa-calls-for-euro-to-weaken-to-1-15-by-year-end"><img src="https://www.indy.finance/news/bofa-calls-for-euro-to-weaken-to-1-15-by-year-end/graphic.svg" alt="EUR/USD's Recent Path Toward BofA's 1.15 Call" width="1200" height="675"></a><figcaption>EUR/USD's Recent Path Toward BofA's 1.15 Call — <a href="https://www.indy.finance/news/bofa-calls-for-euro-to-weaken-to-1-15-by-year-end">Indy Finance</a></figcaption></figure>
Bank of America forecast that the EUR/USD exchange rate will reach 1.15 by year-end, according to Investing.com, pointing to a range of market risks weighing on the single currency. The call implies continued dollar strength relative to the euro through the close of 2026. Currency forecasts of this kind matter beyond traders: a weaker euro raises import costs for eurozone consumers and can widen the competitiveness gap for European exporters selling into dollar-priced markets. The timing also coincides with political maneuvering in Europe, including Bundesbank president Merz meeting frontrunners for the ECB presidency as the race to succeed Christine Lagarde heats up, according to a separate Bloomberg report carried by Investing.com. What remains unresolved is which specific risks BofA is weighting most heavily, and whether the ECB leadership transition itself becomes a source of currency volatility distinct from the macro risks BofA cited.
What would change this view

If EUR/USD is trading materially above 1.15 at the close of 2026, or if BofA revises the call before year-end.

Wire sources cited

Produced automatically by the INDY NEWS Desk from the public wire sources cited above, and checked against them before publication. Market commentary, not investment advice.