The single currency is expected to strengthen over the foreseeable future as the European Central Bank (ECB) slows down its monetary stimulus, analysts told CNBC.
"We see more gains for the EUR ahead as the ECB paves the way for ending outright quantitative easing (QE) purchases later this year," Stephen Gallo, head of forex strategy at the Bank of Montreal, told CNBC via email.
The euro jumped nearly 0.8 percent against the U.S. dollar on Thursday following the release of minutes from the last meeting of the ECB. Analysts interpreted the comments as more hawkish than what President Mario Draghi had sounded back in December, and indicated that the ECB could look to change its guidance to the markets. Some investors are now making calls that the euro zone's central bank could end its massive bond-buying program by the end of next year, with a potential rate increase in the fourth quarter.
"The policy considerations contain so much discussion on the need for a gradual adjustment of communication that the ECB will most likely do so by the March meeting, assuming continued progress on inflation," Anatoli Annenkov, senior European economist at Societe Generale, said in a note on Thursday.