Societe Generale Research discusses EUR/USD outlook and maintains a neutral bias, awaiting further upside move in an attempt to breakout of its recent small range.
"The euro made it up to 1.1275 early yesterday afternoon, and promptly ran out of energy. A 1.1250-1.1275 range since then is suffocatingly small even by the standards of this sloth. It needs to gain another figure or so to convince anyone it's making a break for the upper reaches of its range, and it's very hard to see the catalyst for that yet," SocGen argues.
"The ECB will spend some time discussion the tweaks it can make to TLTRO this week...At the danger of being boring and banging on a drum, a fiscal boost would have more economic impact than anything the ECB can do and from my perspective, may be the only thing that can get Bund yields and the euro a good bit higher," SocGen adds.