Markets are in holiday mode with the UK celebrating May Day. Many market participants are on the sidelines, as shown by anemic volume. There is an absence of catalysts to move the markets, especially with the largest trading center, London, out for the day. We have not seen any economic data releases nor any headlines of significance cross the news wires.

All currencies traded in relatively tight confines across the board. Nonetheless, the price movement has been notable, especially in the Euro. In broad strokes, the USD was under pressure. EURUSD initially posted a healthy gain, touching 1.5500, but eventually dipped back lower to 1.5450. USDJPY remained range bound within the 105.00-40 confines. Consequently, EURJPY pressed higher (through 163.00), as did many of the EUR crosses. The recently active EURGBP found significant upside from 0.7820, adding over 30 pips. GBPUSD ran into thick short-term resistance via hourly moving averages in the 1.9780s and proceeded to decline to levels south of 1.9700.

There are three rate decisions scheduled to be announced this week. The Royal Bank of Australia (RBA) meets Tuesday to decide the fate of their 7.25% interest rate. Thursday brings announcements from the UK Monetary Policy Committee (MPC) at 0700 EDT (1100 GMT) and European Central Bank (ECB) at 0745 EDT (1145 GMT). Though we will provide a more detailed look as the events near, current market expectations are all for results of ''unchanged''. Central banks are entering a ''wait-and-see'' mode regarding the actual effects of the multiple monetary easings over the past year