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We doubt the euro will rally much further this year

The recent resurgence of coronavirus cases in the euro-zone is probably one reason that the euro‘s rally against the US dollar has stalled. Although our baseline assumption is that the virus will gradually be brought under control in Europe and most of the rest of world over the coming months, even if there are more localised lockdowns, we see several other reasons to think that the upside for the euro is limited over the rest of this year.

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