EUR/USD looks to have more upside bias than downside
Comments via Mizuho Bank on EUR.
EUR/USD likely to find support at $1.15
- then to range 1.15 / 1.20
- "looks to have more upside bias than downside given problems related to the dollar"
- Goes on to note that EUR upside is limited
- 1.21-1.22 has been a ceiling since the ECB introduced negative rates
- concerns about re-surging coronavirus infections in Europe but similar is seen in the US
- the US set for a fiscal deficit that may account for about 25% of GDP, which has a close correlation with the currency
- "ample dollar liquidity remains unchanged, USD weakness to continue
- The USD will become attractive again for investors if it becomes clear early in 2021 that the coronavirus will be contained during the winter, which would reduce the need for the US to add to its fiscal deficit