ANZ Research discusses EUR/USD outlook and sees a scope for retesting 1.04 in the medium-term.
"We have downgraded our 2020 GDP forecasts for the euro area as COVID-19 related disruption will delay the anticipated recovery in global trade and Europe’s manufacturing sector. We now expect GDP to rise by 0.9% vs 1.1%," ANZ notes.
"The euro has reached our pre-coronavirus Q1 target of 1.08 vs USD. Severely limited reflationary policy room leaves the risks to the single currency skewed to the downside. A re-test of the post-crisis lows at 1.04 is expected," ANZ adds.