Credit Agricole CIB Research discusses EUR/USD near-term outlook.

"EUR/USD has recently recouped all its losses incurred since the start of the war in Iran on 28 February. The move seems driven by the aggressive USD sell-off across the board that followed the announcement of the two-week ceasefire between the US and Iran on 7 April," CACIB notes.

"In all, we believe that many positives are already in the price of EUR/USD at current levels and the pair is already looking expensive relative to its fair value of 1.1650 that we estimate using fundamental drivers like the EUR-USD rate and box yield spreads, peripheral spreads to bund yields and the relative performance of Eurozone vs US stocks.

We also think that FX investors are getting ahead of themselves pricing in an earlier end to the conflict in the Middle East and caution about potential disappointment ahead of any further negotiation rounds between the US and Iran," CACIB adds.