ANZ Research adopts a neutral bias on EUR/USD and USD/JPY in the near-term.
"Given the euro area’s high beta to global trade, we expect more global uncertainty around the pandemic to keep any upside capped. Positive developments towards an EU fiscal response have improved the outlook for the region, however challenges remain as the region deals with the ongoing pandemic," ANZ notes.
"A surge in US case numbers is likely to erode some confidence in US economic outperformance. Increasing concern over sustained economic damage and the threat of second-round shutdowns are likely to remain supportive of the JPY," ANZ adds.