eFXdata reports that  MUFG Research flags a scope of disappointment on reaching a timely agreement on the EU recover Fund at the EU Summit on Friday.

"In our outlook for a stronger EUR, we have assumed that the EU will reach a timely agreement on the EU Recovery Fund thereby providing an important foundation for the recent rally to extend higher...The case for stronger euro would be reinforced further if EU Leaders reach a timely compromise agreement on an EU Recovery Fund which does not significantly water down initial proposals," MUFG notes. 

"However, a lack of progress and/or watering down of proposals still poses some downside risks in the week ahead,"MUFG adds.