Danske Research flags a scope for EUR/USD to move towards 1.20 in the near-term.
"Upside risks to take us above 1.20 include the EU proving to be an engine of world growth and/or the Fed credibly committing to inflation overshooting (which it has not as of today). The combination of positive progress across US fiscal policy, Brexit, the coronavirus situation and global growth may culminate by year end. If so, we could see a new test of 1.20," Danske notes.
"We see scope for a move to 1.20 near term, if the stars align as discussed above...Note that December holds an unusual number of events that we expect to define risks and direction for EUR/USD as we go in to 2021," Danske adds.