TD Research looks to buy EUR/USD dips towards 1.16 over the coming weeks.
"European lockdowns have been lighter on average, offering them more wiggle room. Plus, EU hospital admission rates per capita lie at a fraction of the level witnessed earlier this year, which also correlates with a reduction of the mortality curve. The consequence is that European governments are likely to take a lighter lockdown approach, especially as testing has surged across the bloc," TD notes.
"CityMapper data trends also show that daily European city mobility runs nearly four times the US's level. These indices shifted in the EUR's favor starting in June, and while the gap has narrowed a bit, it remains positive for European currencies. We look to buy EURUSD dips towards 1.16," TD adds.