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The EUR/USD may be headline-driven, as the Franco-German virus recovery plan is tabled for discussion today. Terence Wu, an FX strategist at OCBC Bank, does not expect the pair to past 1.1000 meaningfully.

Key quotes

“The option space is not pricing in significant moves, but odds seem better for an upside surprise on a breakthrough in talks, rather than the opposite.”

“A significant push-back from the northern Europe bloc will be needed for the pair to turn significantly south.” 

“For now, expect the 200-day MA (1.1012) to cap advances.”