BofA Remains Bearish on Euro Despite Recent Stability

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June 6, 2026 — Bank of America (BofA) continues to hold a bearish stance on the euro, arguing that the currency’s recent stability does not alter the fundamental factors weighing on its outlook.

The bank said underlying economic and market dynamics continue to favor the U.S. dollar over the euro.

Stronger U.S. Economy Supports the Dollar

According to BofA, the relative strength of the U.S. economy remains an important factor supporting the dollar. The bank believes stronger economic momentum in the United States could continue to limit upside potential for the euro.

Energy Risks Remain a Concern for Europe

BofA also pointed to ongoing energy-related risks facing Europe. The bank noted that any renewed pressure on energy markets could weigh on economic activity across the region and create additional challenges for the euro.

Policy Divergence Remains in Focus

The bank highlighted differences in monetary policy expectations among major central banks as another factor influencing currency markets. Diverging policy paths could continue to support the dollar relative to the euro.

Investor Sentiment Toward the Euro Remains Weak

BofA said investor sentiment toward the euro remains subdued despite recent stability in the currency. As a result, the bank sees limited scope for a sustained rally unless underlying economic conditions improve.