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EURUSD1501The offered bias around the single currency stays unchanged for yet another session and drags EUR/USD to the 1.2120 zone on Friday. EUR/USD loses ground for the third consecutive session at the end of the week and always on the back of the moderate improvement surrounding the dollar.

The upside momentum in EUR/USD run out of steam in the 1.2350 area earlier in the month. In spite of the corrective downside, the outlook for EUR/USD remains constructive and appears supported by prospects of a strong recovery in the region (and abroad), which is in turn underpinned by extra fiscal stimulus by the Fed and the ECB. In addition, real interest rates continue to favor the euro area vs. the US, which is also another factor supporting the EUR along with the huge, long positioning in the speculative community.