FXStreet reports that economists at Nordea discuss the EUR/USD outlook.

“Relative financial conditions between the Euro area and the US are pointing to a substantial possibility of US outperformance of the euro area in 2021 but as long as the global growth rebound is perceived as synchronized and broad-based, the USD smile is telling you to buy EUR vs. USD. This narrative may be tested if the gap between US and RoW growth grows too big during H2-2021.”

“We believe in a move towards 1.25-1.27 but we also find it worthwhile considering accepting a take-profit level around 1.25-1.27 in return for a put around 1.19 in EUR/USD.”