EURUSD´s resistance to break the 1.20 level in the short-term is underpinned by a weaker growth differential and broad uncertainty about vaccine developments, i.e. which ones will gain approval and how they will effectively be distributed across the euroarea.
BOfAML | We still see EURUSD somewhat weaker by the end of the year, to 1.08, before appreciating again next year to 1.15, in a gradual move towards our equilibrium estimate of 1.20-1.25. However, our more optimistic forecasts for next year assume that US-China and US-EU trade tensions ease. We also assume a Brexit deal, the likelihood of which have recently improved.