Bank of America: EURUSD will go up to 1.1 by the end of 2023

According to the Bank of America Global Research economists, the dollar is likely to remain stable early next year. However, they expect it to reverse course and decline during the year. 

As reported by the BofA team, the factors that have affected the U.S. dollar value throughout the year still remain valid, even though there has been a correction lower recently. 

The economists look for dollar strength to remain largely intact at the beginning of 2023.  The dollar may take a turn and be on the brink of a sustained downtrend after the Federal Reserve stops raising interest rates. 

They expect the euro to hit parity with the US dollar. In addition, USDJPY is expected to trade at 146 by the first quarter of 2023. Starting in the second quarter, the U.S. dollar will slide to 1.10 for EURUSD and 135 for USDJPY by the end of 2023. Their forecast for EURUSD is above the consensus estimate.