The following is Bank of America Merrill Lynch's comprehensive outlook for the EUR (released today Aug 31) including the single currency's current major themes, strategies, forecasts, and risks. Themes: monetary policy divergence will eventually weaken EUR/USD more. We have been arguing that normalization of monetary policies will be driving markets for years to come. We expect the Fed to lead the way. Other G10 central banks are likely to continue moving to the opposite direction for a while, and then start tightening after the Fed’s tightening cycle has advanced. Even if the Fed delays hiking rates, it will be the ... (full story)