Euro at Risk of a Rotten Summer as Central Bank Policies Diverge
- Bank of America strategists see room for currency to fall more
- The ECB ‘remains cautious’ even as its global peers hike
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There’s more pain ahead for the euro even after the currency’s worst start to a year since 2015, according to Bank of America Corp. strategists.
With the European Central Bank looking “cautious” even as other central banks around the world like the US Federal Reserve jack up rates in increments of 50 basis points or more, the common currency could continue to be at a disadvantage against the dollar through the northern summer, strategists led by Athanasios Vamvakidis said in a note on Friday. They expect the euro to “remain under pressure” versus the greenback over the next couple months.