EUR rose against its major rivals in the European session on Monday, supported by improving vaccine outlook and growing signs of the Eurozone's recovery from the coronavirus. It should be noted, however, that the trading was generally subdued due to holiday closures in several markets in the region.

Last week's PMI data indicated that business activity in Eurozone extended at the fastest pace for over three years early this month, as new order inflows surged to an extent not seen for almost 15 years. The data underpinned bullish views on the region’s growth prospects.

Some market participants believe that a brighter outlook for the euro area's economy will likely force the European Central Bank (ECB) to slow its emergency bond-buying. However, the Bank's president Christine Lagarde stated on Friday that it was still too early for the ECB to discuss winding down its EUR 1.85 trillion emergency bond purchase scheme.