MUFG Research sees a scope for further USD strength into the Summer. 

"Our scenario is shown clearly in our forecast profile. Tighter financial conditions in Q3 mean further US dollar strength is likely but the start of a pause before the scope for some monetary easing in summer 2023 means the trend of US dollar appreciation should turn before the end of this year and become clearer in 2023," MUFG notes.

"A breach of parity in EUR/USD is now a credible risk over the short-term as financial market conditions remain unfavourable," MUFG adds.