EUR: What’s Next For EUR After The EU Recovery Fund? – Citi

Citi maintains a bullish bias on EUR/USD and flags a case for further upside over the coming weeks.

“How we think about EUR Recovery Fund and What’s Next. The EU Summit outcome is a significant success by the EU’s own standards, but we maintain the view that it is not a game-changer for the Eurozone’s growth or institutional prospects,” Citi notes.

“We remain bullish EUR and EURUSD but we think the case for further upside is primarily driven by low real yields in the US and investors’ desire to reduce underweights in European assets, including as global investors diversify away from the US,” Citi adds.