ANZ Research notes that the increased use of the EUR as a funder can weigh on EUR/USD in the coming months.

"The ECB will step up its bond purchases in Q2 to maximise financial accommodation. This policy move has exchange rate implications. By suppressing yields, the ECB is reinforcing the negative term interest rate structure and enhancing the attractiveness of the euro as a funding currency. Beyond the FX market, it is very feasible that reverse Yankee bond issuance will pick up strongly again,' ANZ notes. 

"It is also notable that some Australian and Asian corporates are opting to look at the EUR rather than USD markets for funding. Increased use of the EUR as a funder can weigh on EUR/USD in the coming months. Given the contrast between very strong US growth and the delayed euro area recovery, we anticipate that EUR/USD will range trade for some time yet, confined to 1.16-1.23," ANZ adds.