ING Research sees a limited scope for further EUR downside in the near-term.

"Let’s remember that the euro is the best-performing G10 currency after the dollar in the past month, and we doubt fresh idiosyncratic EUR weakness is on the cards," ING notes.

"The European Central Bank continues to propel rate expectations higher, and the recent inflation readings give President Christine Lagarde all the incentive to sound hawkish when she delivers another 50bp hike next week. Incidentally, the latest PMIs have been pointing to an improved eurozone outlook," ING adds,