Barclays Research discusses EUR/USD outlook and sees a scope for further upside over the medium-term.

"A faster exit from zero-COVID in China and a maturing tightening cycle for the Fed, given signs that US inflation is peaking, imply more upside for the EUR in 2023. By our estimates, there is an additional 3-4% upside potential in EURUSD from China’s reopening alone, which however seems to be on hold given geopolitical concerns surrounding the China-Russia rapprochement," Barclays notes.

"Upside risks to energy prices from geopolitics and China’s reopening have yet to materialize. Ongoing policy normalization by the ECB also supports medium-term EUR upside, notwithstanding some ambiguity in February’s message," Barclays adds.