Saxo Bank’s FX traders are seeing increased options buying euro dollar pushing towards the lows, despite a quieter trading session caused by bank holidays across the world at the beginning of the week.

They also explain traders are bracing themselves for the upcoming European Central Bank meeting on 5th June and everything's in something of a limbo state. ECB policy makers have suggested they're working on a package of possible measures, including interest-rate cuts and liquidity injections, while holding out the prospect of asset purchases as a more powerful option. At last month’s meeting,the ECB President, Mario Draghi, said officials are “comfortable” with acting next time and willing to use unconventional instruments if needed.

Elsewhere they've been watching USDJPY try to break the downside of the range but the options market quickly responded and as a result this trend has now been reversed.