EUR/USD Holds Near 1.16 as BofA Urges Fading Summer Rallies

EUR/USD trades around 1.1575-1.1610 after the ECB's June 11 hike to 2.25%. Early-May optimism with targets above 1.18 faded as hotter US CPI, resilient data and Middle East tensions boosted the dollar. Banks have turned cautious: BofA recommends selling rebounds while ING still eyes 1.20 longer-term and Danske forecasts 1.12. Focus now shifts to US-Iran talks and Fed policy, with analysts expecting continued volatility and downside risks into summer.