Bank of America expects the euro to weaken against the US dollar by the end of the third quarter, citing stronger US economic data and a more accommodative stance by the Federal Reserve.
The bank also noted that rising oil prices in the short term should provide additional support to the dollar during this period.
Bank of America forecasts that the dollar will likely weaken after the third quarter as oil prices decline and markets fully factor in the Federal Reserve's interest rate hikes.
The bank did not provide specific numerical targets for the EUR/USD exchange rate in its forecast.
The euro/dollar currency pair is one of the most actively traded on the global forex market.