Investing.com – The Euro (EUR) saw a slight rise on Monday, crossing the 1.09 mark against the US Dollar (USD), as traders anticipate potential catalysts that could lead to further rises. Despite the lack of enthusiasm in the FX options market, with one-month implied volatility still at a low of 5.5%, and risk reversal showing a slight preference for EUR put options, the pair has managed to rally with minimal attention.
The currency pair's advance comes ahead of major economic events later this week, including the European Central Bank meeting on Thursday and the US employment report on Friday. While a push to test the 1.10 level may have been ambitious before these events, the market is maintaining a bullish outlook for this week.
In the Eurozone, the economic data calendar is relatively empty today, shifting market focus to the Swedish Krona (SEK), which enjoyed a rally on Monday following a strong manufacturing Purchasing Managers' Index (PMI) and a generally weaker dollar. Attention now turns to the speech delivered by Anna Bryman, First Deputy Governor of the Riksbank. Investors are keen to gauge the Riksbank's stance on interest rates, with the probability of a rate cut later this month currently standing at 24%, with an 82% chance of a cut by August. Any cautious statements from Breman could lead to the Krona giving up some of its recent gains.
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