FXStreet reports that economists at Westpac discusses EUR/USD outlook. 

“The EU’s covid vaccine rollout has suffered several logistic and bureaucratic obstacles. Regional lockdown restrictions may be on the cusp of being relaxed, but there are growing concerns over the persistence of new COVID-19 cases as new variants take hold. The economic consequence is a potential delay in recoveries which could undermine the optimism which had been featured in recent PMIs.”

“The ECB has underscored that it will maintain PEPP flexibility and that it has further policy tools to provide support if needed. This may well be a feature as the ECB meets next week. EUR/USD is likely to remain contained within an effective 1.1950-1.2350 range.”