Danske Research sees a scope for EUR/USD to fall through 1.17 this week.
"EUR/USD dropped firmly below 1.18 after the strong US jobs market report on Friday, which triggered a jump in US interest rates. The USD market relies more on jobs market data than inflation data when assessing the outlook for Fed's monetary policy and a positive surprise was just what the market needed. We find it interesting that risk sentiment in the stock market held up pretty well on Friday after the release of the jobs numbers. It suggests to us that the market can sustain the rise in interest rates and the stronger USD," Danske notes.
"Another positive CPI surprise on Wednesday could pave the way for further drop in EUR/USD towards our 1.17 target in 3M. Note the Fed speaking schedule this week is relatively light," Danske adds.