FXStreet reports that according to economists at Westpac, Brexit progress could lift EUR/USD to 1.20.

“Increasing COVID-19 cases in Eurozone countries are heightening risks of tighter restrictions and therefore further economic costs and fiscal strains. The coming month will be critically important in determining whether infections plateau or whether Europe faces a harsh economic winter.”

“The current EC Summit (15th-16th Oct) agenda is set to discuss progress on COVID-19 health measures and then EU/UK Brexit talks. The fragility of the regional recovery means that a further hit from a disorderly imposition of trade tariffs and restrictions on UK goods is likely to heighten EC discussion over finding some compromise with UK that is politically acceptable given that UK is the third-largest trading partner for EU-27 (after US and China).” 

“EUR/USD is likely remain within its recent 1.15-1.20 unless Brexit progresses or COVID-19 counts accelerate or subside.”