Bank of America Merrill Lynch adjusted its EUR/USD forecasts upward but remained aggressively bearish. BofA now expects the cross to weaken to 1.27 in Q1 and 1.22 by the end of the year – a small upward revision from its latest projection of 1.20. BofA outlines the following 6 reasons behind this bearish call: -BofA expects the continued recession in the Eurozone and an increase in risk aversion from substantial US fiscal tightening to weigh on the euro during the year. -BofA projects Eurozone GDP to drop by another 0.4% in 2013 as fiscal consolidation and bank deleveraging continues, compared with a consensus drop ... (full story)