EUR/USD: Set to test 1.2000 amid additional US dollar declines – Deutsche Bank

Analysts at Deutsche Bank offer their outlook on the EUR/USD pair, suggesting that the path of least resistance is to the upside amid expectations of further US dollar declines.

Key quotes (via Bloomberg)

“Focus will once again turn to specific growth outcomes across countries.

US management of coronavirus crisis has been "suboptimal", and there are large fiscal cliffs ahead, which could push EUR/USD to $1.20.

We would frame dollar weakness around two stages.

Stage 1: the removal of the dollar risk premium, EUR/USD to 1.15. This has been the most important driver of the dollar so far.

Stage 2: the end of dollar exceptionalism.”