Business activity data for the euro zone is set to show a slight uptick on Thursday which could give the single currency a temporary boost, but analysts are unanimous in their thinking that the single currency is set for a much larger fall over the long-term.
Markit's euro zone composite PMI, which gauges how thousands of businesses across the region fare each month, is estimated to rise to 48.1 from a figure of 47.7 for May. But Neil Mellor, a senior currency strategist at BNY Mellon told CNBC that any sustained upside for the currency would be doubtful.
"The euro just doesn't react to underlying fundamentals," he said.
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The euro has largely been a story of reverse diversification in foreign currency, he said. The recent fall in emerging market currencies has meant reserve managers are accumulating fewer dollar reserves to diversify into euros, with China making clear that they want fewer reserves in the first pace, he said.
"The euro could well finish the year weaker against sterling and the dollar," he said.
Another headwind for the currency, according to Sebastien Galy, a currency strategist at Societe Generale is the continued threat of negative deposit rates from the European Central Bank - effectively charging banks to hold cash overnight.
"The ECB is ready for negative interest rates. Its impact will be clearly negative on the EUR as the experience from Denmark shows. Investors do react badly when asked to pay on their own deposits," he said in a research note on Monday.
The central bank is likely to ease monetary policy further due to "japanification", Galy said, as the recent strength of the euro against the yen spreads concern with the current strong balance of payments in favor of Japanese exports.
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"The EURUSD is not necessarily seen as strong enough yet to ease if you are say in Germany but far more so in the periphery," he said.
Both services and manufacturing data, which feeds into the headline figure, is also set to rise according to a Reuters poll, despite continuing to remain below the 50 point mark. A level below 50 is consistent with contraction, while a level above signals expansion in activity.