Credit Agricole CIB Research argues that EUR/USD is unlikely to repeat the 20222 sell-off.

"We are cautious on the EUR from current levels but doubt that a repeat of the aggressive 2022 sell-off is on the cards.

Firstly, the Eurozone economy shows considerable resilience, supported by robust domestic demand. It also remains to be seen whether the contagion from the OAT sell-off would intensify significantly further, in a blow to the EUR," CACIB notes.

"Also, the ECB is very focused on containing inflation, and its hikes support the EUR rate appeal. The downside risks to our EUR outlook would grow, however, if the EGB market sell-off escalates and thus tightens European financial conditions, limiting the ECB’s ability to hike too aggressively," CACIB adds.