The risk to mere consolidation: euro

As we finished up last week with US Nonfarm Payrolls, we were left with a taste of risk-taking. US stocks breached resistance and the dollar flopped, barely holding on above support.

Now starting this week we wouldn’t be surprised to see some sort of consolidation (pullback, or sideways move) ... as major data reports are sparse. There have been and will be, however, central bank meetings and decisions. The Bank of Japan and the Reserve Bank of Australia are already out of the way with barely a ripple in the markets to show for it. The Bank of England and Bank of Canada are on tap later in the week. The Bank of Canada has the most potential to stir things up, at least for the Canadian and commodity dollars.