MUFG Research sees a scope for EUR outperformance on a brighter vaccination prospects in Europe.
"The chart below highlights a notable acceleration across key EU countries that will greatly improve optimism over a faster pace of vaccination roll-outs. France has seen a pick-up with over 0.5mn vaccines administered on Friday, a one-day record. In Germany on Thursday, 719k vaccines were administered while in Italy the 7-day average of administered vaccines hit 200k for the first time over the weekend," MUFG notes.
"The higher yields in the US and the evidence of better COVID vaccination roll-outs in Europe may well limited EUR/USD downside. We’d still expect a EUR/USD decline but the euro should outperform other G10 currencies versus the dollar,' MUFG adds.