Danske Research maintains a bearish forecast profile on EUR/USD and a short position in spot targeting a move towards 1.11.

"We maintain our downward-sloping EUR/USD forecast profile unchanged as we continue to see both tactical and structural downside potential for the cross," Danske notes.

"We expect US real economic growth to outpace euro area by a wide margin this year and expect the Fed to tighten its monetary policy more than the ECB. As an energy net exporter, US is better insulated against renewed energy supply shocks than the euro area," Danske adds.