Citi flags a scope for the EUR to be a good funding currency against commodity and risk FX in the near-term.

"CitiFX notes the EUR will underperform risk and commodity currencies for now, as EUR headwinds are accumulating. That also implies that we could see EURUSD retest the recent lows," Citi notes. 

"In line with our expectation, the March ECB meeting was slightly dovish, highlighting the intent to “significantly increase” the pace of purchases in their policy decision over the next quarter. We think in short-term, that dovishness is mostly in the price, even though for now the central bank equation has ceased to be a driver of EURUSD upside," Citi adds.