Parity in EUR/USD is only a matter of time – BAML

FXStreet (Edinburgh) - BofA Merrill Lynch Global Research expects spot to reach the parity level early next year.

Key Quotes

“We still expect EUR/USD to weaken to 1.05 by end-2015 and to parity in Q1 2016”.

“This is 15% below our estimated equilibrium, which is reasonable to expect when monetary policies diverge”.

“EUR/USD has already weakened in recent weeks, as markets expect ECB QE2 in December”.

“We expect the ECB to deliver (a strong conviction), which together with a Fed hike