Euro futures rallied as volatility dropped before central bank meetings.

Euro futures closed higher for the fourth consecutive session at 1.1640, up over 12% for the year. Despite choppy trade over the last couple of months, the market is sitting just below the two-month midpoint, coiling for the next catalyst. Volatility on Euro futures has been moving lower over the last couple of weeks and is currently holding at one-year lows. Traders are looking ahead to this week's central bank announcements. The Fed is expected to cut 25 basis points on Wednesday and is pricing in further cuts this year, while the ECB is not expected to cut on Thursday. The divergence between a Fed that is cutting rates and an ECB that is not could be a major driver for the euro.