Investing.com – The euro (EUR) saw a subtle gain on Monday, breaking above the 1.09 mark against the US dollar (USD) as investors look to potential catalysts that could spur further gains. Despite a lack of enthusiasm in the currency options market, where one-month implied volatility remains low at 5.5% and risk reversals indicate a slight preference for euro puts, the pair managed to climb with minimal attention.
The currency pair’s progress comes ahead of key end-of-week economic events, including Thursday’s European Central Bank (ECB) meeting and Friday’s U.S. jobs report. While the push to test the 1.10 level may be ambitious ahead of these events, the market maintains an hopeful outlook for the week.
In the euro zone, the economic data calendar is relatively blank today, shifting market attention to the Swedish krona (SEK), which rose on Monday following a stronger industrial purchasing managers’ index (PMI) and an overall weaker dollar. Attention now turns to a speech by Anna Breman, first deputy governor of the Swedish central bank Riksbank. Investors are eager to assess the Riksbank’s stance on interest rates, as the probability of a rate cut later in the month is currently estimated at 24%, with an 82% chance of a cut by August. Any dovish comments from Bremen could result in the crown giving up some of its recent gains.
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