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At the end of June, I made the argument that the EUR/USD would continue to prove resilient during the COVID-19 pandemic, and could rise to the 1.20 mark by the end of this year.
It appears that I may have been overly conservative with my assumptions, as we have seen the currency rise to just under that level earlier this month:
Source: investing.com
From this standpoint, it looks increasingly likely that the EUR/USD could ultimately breach the 1.20 mark in the next month.
We have seen that inflation in the euro area has steadily been