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“Some mixed messaging has emerged at the ECB over the potential for more policy easing amidst concern over the EUR. None of this should be surprising given the range of opinions at the ECB undermining credibility,” note TD Securities analysts.

Key quotes

“Still, we think the jawboning of the currency won’t stop and skepticism over the EUR should remain. For all the focus on the vaccine race, the EU is definitely losing all the while it disputes a major vaccine provider. This threatens a multi-albeit unimpressive-speed recovery in the EU.”

“Several FX pairs have shown a capacity to push the barrier this week. We think this can continue in the weeks ahead. Of course, month-end noise will be the focus today where our model indicates modest firmness for EUR and CAD, some softness for AUD and NZD, but notable weakness in the JPY. Holding the breach of trendline resistance and the top-end of the ‘cloud’ in USDJPY today, will have us look towards 105.65 near-term.”