FXStreet reports that economists at Westpac said that rising COVID-19 cases and restrictions should cap EUR gains.

“Although ECB members have indicated through this week that there is unlikely to be any change in their policy stance at next week’s ECB meeting, there has also been an increasing sense of concern over the persistently rising COVID-19 case counts.”

“The pandemic will remain a dominant factor for policy and regional growth. However, the huge success for this week’s first EU issuance of SURE (Support to mitigate Unemployment Risks in an Emergency) bonds, also the largest EUR sustainable bond issue, has provided support for EUR” 

“EUR may be gaining from global risk appetite. However, EUR/USD is still likely to remain in its recent 1.15-1.20 range.”