FXStreet (Edinburgh) - BofA Merrill Lynch Global Research expects spot to reach the parity level early next year. Key Quotes “We still expect EUR/USD to weaken to 1.05 by end-2015 and to parity in Q1 2016”. “This is 15% below our estimated equilibrium, which is reasonable to expect when monetary policies diverge”. “EUR/USD has already weakened in recent weeks, as markets expect ECB QE2 in December”. “We expect the ECB to deliver (a strong conviction), which together with a Fed hike in Dec (a close call) should push the euro lower. If the Fed waits, then we will have to just move our projection path forward”. For more information, read our latest forex news.