eFXdata reports that Bank of America Global Research discusses EUR/USD outlook and outlines 6 key reasons for staying structurally bearish on the pair over the coming months targeting a move towards 1.02.

"Though EURUSD is undervalued by about 10%, according to our estimates, we see it weakening further in the rest of the year . We forecast EURUSD at 1.02-1.05, with risks to the downside.

We expect EURUSD 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," BofA argues.

We would be wrong and EURUSD 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," BofA adds.