Credit Agricole CIB Research discusses the EUR outlook and maintains a neutral bias in the near-term.
"The EUR has been generally lagging behind other risk-correlated currencies of late. This seems to reflect the relatively slow rollout of Covid vaccines in a number of Eurozone countries. In turn, this has added to concerns about the near-term economic outlook as European governments are struggling to re-open their economies," CACIB notes.
"In all, we maintain a cautious near-term outlook on EUR/USD. At the same time, we note that EUR/GBP is already looking very undervalued according to our long-term fair value model," CACIB adds.