FXStreet reports that according to economists at Westpac, EUR/USD may test 1.17-1.22 range support.

“Comparatively poor EU vaccine rollouts and growing discontent over the distribution of both vaccines and Recovery Funds at national levels became more acute this week. The impact of the poor rollouts has become clear this week with rising Covid-19 case counts in many EU countries. Economic advisers to Germany’s Merkel cut German growth forecast to 3.1% in 2021 from their Nov forecast of 3.7% and warned that their projection of 4% growth in 2022 was at risk should the anticipated rise in consumer activity be suppressed by rising COVID-19 cases. Relative growth and vaccine rollouts are impacting FX and so the risk for EUR against the firming USD is an early slide to test 1.17-1.22 range support.”