Credit Agricole CIB Research sees a limited scope for further EUR rally over the coming weeks.

"The EUR together with the GBP, CHF and, to a lesser degree, the SEK have emerged as some of the best G10 FX performers so far in 2023. In addition, the EUR has benefitted from the rotation out of the USD that started in Q422. More recently, investors have also been rotating out of the JPY, AUD, NZD and CAD as they reassessed their bullish outlook on China and given the relatively more dovish stance of the BoJ, RBA, RBNZ and BoC," CACIB notes. 

"While the rotation can continue especially if the policy rate differentials move further in favour of the EUR, our FX positioning data and FX valuation analysis suggest that many positives are already in its price. We also note that the fundamental case for further EUR outperformance could weaken in coming months," CACIB adds.