Credit Agricole CIB Research flags a scope for EUR downside into next week's ECB January policy meeting,

"FX investors continue to focus on the ECB and its response to the recent disinflation in the Eurozone. While the Eurozone inflation expectations seem to be on course to revisit their highs from early 2020 on the back of recovering global commodity prices, the recent EUR-strength could put the recovery to the test if left unchecked," CACIB notes. 

"Given that the outlook has deteriorated since December, the markets could further start expecting that the ECB would ‘double down’ on its attempts to talk down the EUR at its January policy meeting next week," CACIB adds.