Speculation about a move to price oil in the Euro and next week's US retail sales pose risks for the greenback.

With the dollar falling 13 percent against the Euro since the beginning of last year, Main Street is finally waking up to what Wall Street has known all along, which is that currencies matter.

With the only reason for the dollar’s rally being risk aversion, many traders are wondering when the dollar rally will end.

Over the past few weeks, whenever the dollar would rise against the Euro for example, it would fall against the Japanese yen or British pound. Today was different.

The recent price action of the EUR/USD suggests that we could see a breakout in the currency pair in the near future.

Earlier this week, the Federal Reserve told the markets that the reason why they lowered interest rates by 50 basis points to 3 percent was because the labor market is weak.  However, the severity of the problems with job growth was not clear until the release of this morning's non-farm payrolls report.

The market currently believes that 70,000 jobs were added to US payrolls in the month of January, but if payrolls match this forecast, how much will it really help the dollar?

In a little more than one week, the US central bank has lowered interest rates by 125bp, turning the US dollar into a de facto carry trade funding currency.

Since the emergency rate cut, traders have become far more realistic and stocks have stabilized. As a result, rate cut expectations have eased significantly.

Traders may be dumping their long dollar exposure or shorting dollars outright because no one believes that the outcome of the Federal Reserve meeting will be dollar bullish.