True, we did break above 1.09 momentarily, but that was turned right back around. It looks as if we are heading towards the middle of this consolidation area again, which tells me we just don’t have anywhere to be. Summertime can be somewhat slow in the markets, and that might be what we’re setting up for, just a very slow, choppy, sideways, tight range summer. This is actually quite normal for the currency markets.

Both the ECB and the Bank of Canada are expected to cut this week, and the Federal Reserve is still a bit of a mixed picture, although recently economic numbers have suggested that perhaps they will have to be cutting sooner rather than later. But at this point, they still remain data-dependent, at least according to what they say. With this, I’m very neutral in this pair.

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