Investing.com – The euro (EUR) edged higher on Monday, breaking above 1.09 against the U.S. dollar (USD), as traders await potential catalysts that could lead to further gains. Despite a lack of enthusiasm in the FX options market, where monthly implied volatility remains low at 5.5% and risk reversals show slight preference for Euro puts, the pair managed to rise with minimal attention.
The currency pair’s progress comes ahead of key economic events later this week, including Thursday’s European Central Bank (ECB) meeting and Friday’s US jobs report. While attempting to test the 1.10 level may be ambitious ahead of these events, the market maintains a bullish outlook for the week.
In the eurozone, the economic data calendar is relatively empty today, shifting market focus to the Swedish krona (SEK), which rose on Monday following a stronger manufacturing purchasing managers’ index (PMI) and a generally weaker dollar. Attention now turns to a speech by Anna Breman, First Deputy Governor of Sweden’s central bank, the Riksbank. Investors are keen to gauge the Riksbank’s position on interest rates, with the likelihood of a rate cut later this month currently pegged at 24%, and the likelihood of a cut by August at 82%. Any peace-loving statements from Breman could result in the crown losing some of its recent gains.
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