FXStreet reports that analysts at TD Securities anticipate further downgrades to global growth, which should cap the EUR rally and anchor the broad USD in the near-term.

“We believe that the next move is lower back to 1.05 this quarter, but at the same time, that's likely to mark another bottom for the single currency moving forward.” 

“The rub for the EUR right now is that the forthcoming data could show a more protracted shock to the EZ economy. That's relative to the US, and others, while the current response has also been much slower in the EZ.”

“The fragmentation across the member states is critical, highlighting their inability to deliver a unified fiscal response to the crisis. If the crisis eases fast, that could work in their favor, as employment levels will remain stable.”