Analysts at TD Securities are bullish on the US dollar and expect EUR/USD to drop under 1.05 in the weeks ahead.
The arguments that plenty dollar liquidity would weaken the greenback appear weak, as the US is still a high yielder and foreign capital will continue to be directed towards the world's largest economy, analysts at TD said.
With global trade stalled, the EU's large trade surplus (read: Germany) puts the longstanding current account surplus at risk.
The bleak global growth outlook is particularly problematic for this pro-cyclical currency.
Europe continues to struggle to offer a unified front.
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