EUR/USD could drop below 1.05 - TD Securities

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. 

Key points

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.