Investing.com — On Monday, the euro (EUR) experienced a subtle rise, surpassing the 1.09 mark against the US dollar (USD), as traders anticipate potential catalysts that could prompt further advances. Despite the lack of enthusiasm in the FX options market, where one-month implied volatility remains at a low 5.5%, and the risk reversal shows a slight preference for euro puts, the pair has managed to climb 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 employment report. While a push to test the 1.10 level may be ambitious before these events, the market maintains a bullish outlook for the week.

In the eurozone, the economic data calendar is relatively empty today, shifting the market’s focus to the Swedish krona (SEK), which enjoyed a rally on Monday following a stronger manufacturing Purchasing Managers’ Index (PMI) and a generally softer dollar. Attention is now turning to a speech by Anna Breman, First Deputy Governor of Sweden’s central bank, the Riksbank. Investors are keen to gauge the Riksbank’s stance on interest rates, as the probability of a rate cut later this month is currently seen at 24%, with an 82% chance of a cut by August. Any dovish remarks from Breman could lead to the krona relinquishing some of its recent gains.

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