Credit Agricole CIB Research discusses EUR/USD near-term outllook.

"The most intense phase of the EUR sell-off seems to be behind us. The respite came despite lingering concerns about the ability of the parties in the French National Assembly to compromise on the 2027 budget. We think that the EUR has benefited from a broader shift in sentiment on the global fixed income markets that reflected fading central bank rate hike expectations amid softer energy prices and a renewed stock market sell-off focusing on technology companies," CACIB notes.

"These developments helped the EUR by: (1) putting an end to the widening of the spread between OAT and other EGB yields vs Bunds; and (2) helping the currency’s relative rate spreads consolidate near its lows, as investors pare back their Fed and BoE rate hike expectations. In the near term, EUR-investors will continue to follow the progress of the French budget bill in the National Assembly," CACIB adds.