FXStreet reports that the analysts at Bank of America Global Research (BofA) believe that the EUR/USD pair is likely to drop to 1.1500 amid a likely rebound in the U.S. dollar, as they revise down their 2021 price forecasts from 1.2500.

“Key catalysts for the US dollar strength include: 1) Fed and ECB policy divergence, 2) The potential for substantial US fiscal stimulus, 3) Analysts are looking for twice as fast US recovery than for the eurozone, 4) A still-short USD market position, particularly against the EUR and 5) Challenging outlook for risk assets given stretched valuations and substantial uncertainty.”

“EUR/USD seen lower at 1.1800 in June vs. the previous forecast of 1.2200.”

“The spot could drop to 1.1600 by September vs. the previous forecast of 1.2400.”