Credit Agricole CIB Research discusses EUR/USD outlook and targets the pair at 1.20 by year-end and at 1.24 by 2022-end.
"We have a neutral EUR outlook in the near term but expect a recovery over the medium term. Recovering global trade and growing CB FX reserves to boost demand for the EUR from Eurozone exporters and global central banks," CACIB notes.
"Foreign inflows into the Eurozone stock market to resume and EU recovery fund bonds can attract inflows into the undervalued EUR and thus more than outweigh the negative impact of the dovish ECB on the single currency. EUR/USD remains undervalued," CACIB adds.