Near-term, economists at TD Securities like EUR/USD upside, which should eye a retest of 1.20.
ECB to announce a reduced pace of Q4 PEPP purchases
We expect the European Central Bank (ECB) to announce a reduced pace of Q4 PEPP purchases, partly reflecting easier financial conditions. All other policy levers are likely to be left on hold, with inflation forecasts revised sharply up this year and next.”
“Communication risks are high, and Lagarde will want to avoid sounding overly hawkish, instead emphasizing ‘persistence’."
“This backdrop should reinforce the recent bottom in the EUR/USD, indicating that we're likely to revisit 1.20 rather than 1.15 in the months ahead.”