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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