FXStreet reports that economists at Danske have flattened their EUR/USD profile: they now see the cross peaking in three-to-six months at 1.20 (previously 1.23) and for now, the cross looks in the 1.15-1.19 range.

“We expect the cyclical uptick in Europe (and elsewhere) to continue over the coming months. The introduction of new European lockdowns, a marginally hawkish Fed, mild weakness in the data, verbal intervention from the ECB and a likely postponement of the payments linked to EU fiscal support have caused EUR/USD to take a step back from previous highs (1.18-1.20), to around 1.17.”

“Upside risks to take us above 1.20 include the EU proving to be an engine of world growth and/or the Fed credibly committing to inflation overshooting (which it has not as of today). The combination of positive progress with US fiscal policy, Brexit, the corona situation and global growth may culminate by year-end. If all goes well, we could see a new test of 1.20.”