MUFG Research discusses EUR/USD outlook and sees a scope for further correction  lower in the near-term.

"It still seems most likely that the ECB will hike by 50bps on 16th March – market participants think so too, with 48bps currently priced. However, the market has about 70bps of additional tightening assuming a 50bp hike in March and that is looking increasingly questionable. With the markets shifting the other way in the US, the implied downside pressure on EUR/USD looks set to continue over the short-term," MUFG notes. 

"Euro-zone cyclicals have begun underperforming the broader market suggesting the good news related to lower natural gas prices is now fully priced, which could also weigh on EUR at these levels," MUFG adds.