EUR/USD is well-positioned to take advantage of dollar depression and may hit the 1.20 level in the coming weeks, Kit Juckes, Chief Global FX Strategist at Société Générale, reports.
See: EUR/USD to edge higher towards the March high and 200-DMA at 1.1990/1.2005 – Commerzbank
Fed rate hikes unlikely in 2021
“A clearer dollar uptrend is only likely when Fed rate hikes are more clearly visible on the horizon and that still seems more of a 2022 than a 2021 story.”
In the meantime, it wouldn’t be surprising if in the next few weeks EUR/USD re-tests 1.20.”
“Today though, the pair may find that 1.1915 (the July and August high), is the next barrier to excitement.”