Credit Agricole CIB Research discusses the EUR outlook and doesn't see a scope for sustained gains in the near-term.
"Despite the latest FX price action, we doubt that the resilience of the EUR could extend in the very near term. Indeed, the Covid pandemic is still untamed and the Eurozone economy continues to struggle under the weight of onerous lockdowns in a number of member states," CACIB notes.
"In the very near term, the Eurozone economic confidence indicator could highlight some of the downside risks ahead for the recovery and thus tame the resurgent EUR. Moreover, a lack of clarity about whether the ECB would ‘taper’ its PEPP purchases in Q321 could further add to the headwinds for the EGB yields and thus the single currency," CACIB adds.