Barclays Research maintains a cautious bias on EUR around current levels and sees limited scope for further rally in the near-term.
"The mounting reopening signals in China, especially in relation to mRNA vaccinations onshore, generated a significant EUR bounce late last week. However, this is a tentative prospect for now while it could also generate headwinds for the EUR from the perspective of surging commodity prices as China demand picks up. Fed hawkishness against continued data resilience also caps the near-term upside in EUR," Barclays notes.
"Without major data releases this week, the spotlights will likely remain on China’s reopening and US CPI (Wed, Barclays 0.4% m/m, cf 0.6%). The ECB economic bulletin (Thu) and a number of GC speakers (including President Lagarde) stand out this week," Barclays adds.