Euro futures started the week higher, extending late-week momentum to reach an intraday high of 1.1560 before reversing course to close lower near 1.1510. The pullback was driven by a rebound in the U.S. dollar as Middle East headlines introduced market uncertainty. Meanwhile, Euro volatility continued to drift lower, with the CME Group CVOL index slipping as prices pulled back from daily highs. CFTC positioning data revealed that speculators added to net short positions ahead of the Federal Reserve meeting, bringing net shorts to their highest level since December 2024. Todd Colvin breaks down the key currency drivers.