Bank of America Global Research discusses EUR/USD outlook this year and sees limited room for further upside.
"To a large extent, the EUR call this year is a call on global equities and the USD. We had assumed that the move back to normality on a post-Covid world would allow EURUSD to go back to equilibrium, but we are already there," BofA notes.
"We are skeptical about substantial further EUR strength, particularly during a Eurozone recession that is more severe than in most of the rest of the world. The long EUR market position also makes it one of the most vulnerable G10 currencies to an overall market risk-off," BofA adds