Euro selling pressure builds as implied volatility measures skyrocket and dovish expectations fester while forex traders anxiously await the high-impact September ECB meeting slated for Thursday.
EURUSD may fall if German ZEW data underperforms and commentary from ECB officials continues to underscore a need to introduce more Eurozone stimulus.
The Euro and US Dollar will be closely watching major cross-Atlantic event risk as ECB President Mario Draghi prepares to speak in Germany while the US Dollar braces for local CPI data.
Overnight implied volatility on EURUSD forex option contracts exploded to its highest level since Jan 23 as currency markets prepare for potentially formidable price action.