Societe Generale Research maintains a bullish bias on EUR/USD in the near-term.

"EUR/USD still look as though it can break 1.20 before a trade deal is announced or impasse over the EU Budget is resolved. Not sure why the euro is so insouciant, but when looking at the chart below, of 2y/2y real rate differentials, we just feel like sticking long the euro, expecting few fireworks and steady upward pressure," SocGen notes. 

 

"Meanwhile whether or not a trade deal is struck determines whether EUR/GBP breaks free to the lower or upper end of its range," SocGen adds.