Liquid Insight Bearish EUR Views From Across The Pond

US investors remain bearish on European assets citing economic and fiscal concerns. BofA analysts share near-term downward risks for EURUSD but maintain a medium-term bullish outlook.

Key Takeaways

• 1.US investors are uniformly bearish on Europe due to limited reform progress, underwhelming German fiscal stimulus, and energy/competition risks.
• 2.BofA remains tactically short EURUSD, anticipating data will weigh on the currency over the summer, though they retain a bullish bias for the medium term.
• 3.US client interest in European FX hedging is high; data shows mixed behavior in hedge ratio adjustments among Danish, Finnish, and Dutch pension funds.

Table of Contents

• Key takeaways
• FX trip notes from the US
• US investors on Europe & EUR: near-uniform bearishness
• Where we agree: near-term EURUSD risks remain skewed to the downside
• Where we disagree: just too much pessimism
• Several questions about European FX hedge ratios
• Notable Rates and FX Research
• Rates, FX & EM trades for 2026
• Analyst Certification
• Disclosures

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