MUFG Research adopts a constructive bias on EUR/USD in the near-term.
"The European Commission’s proposal for the Recovery Fund has reinforced investor confidence in euro-zone assets and the euro...In the interim it increases pressure on the ECB to deliver further support," MUFG notes.
"In these circumstances, we expect the EUR to continue trading on a firmer footing in the near-term. EUR/USD appears set to test the top of the 1.0800 to 1.1200 trading range. However, it may still be premature to turn outright USD bearish," MUFG adds.