Don't expect EUR/USD to retest the January highs – Morgan Stanley

Morgan Stanley’s latest EUR/USD forecast highlights the upside risk to the EUR/USD prices despite being neutral on the regional currency Euro (EUR).

Among the positive catalysts mentioned in the piece are, “more countries announce their economic reopening plans for the summer and Europe's COVID vaccination rates continue to pick up."

On the contrary, expectations of a delay in the European recovery fund weigh the EUR/USD prices, per the bank as it said, “The latest German Constitutional Court ruling removed a key obstacle to the launch of the EU recovery fund, but our economists think the first disbursement from the fund will likely still slip from 3Q to 4Q21.”

Read: EUR/USD Price Analysis: Keeps bounce off 100-day SMA on Fed day