The ECB outlined plans to begin quantitative tightening. Thus, the Euro has still got plenty of upward momentum, in the view of Kit Juckes, Chief Global FX Strategist at Société Générale.

1.0735 will be a crucial barrier to overcome

“With QT coming in Europe (and remember, it was the cocktail of QE and negative rates that saw EUR/USD average 1.13 in the 5 years to 2019, down from 1.33 in the 5 years to 2014), the Euro has still got plenty of upward momentum.”

“A January hangover seems more than likely but not before an excess of bullishness in the coming days, even if yesterday’s high (1.0735) will be a crucial barrier to overcome.”