By TraderVox.com
Eurozone Investor confidence plummeted in April to -14.7, which is lower than market expectation of -8.7. This has caused the cross to remain on the downside. However, speculations of QE3 which have been balancing the Euro weakness are set to be dispelled by Bernanke speech on Friday. We expect to see this pair closing the week on a low which is expected to continue to next week.
GBP/USD
The pair closed the week at 1.5858 after positive US data. The FOMC minutes did affect the pair pushing it down at the start of the week but this is set to change in the coming few days. We see the pair continuing to trade at the mid-1.58 range. However, reports from the US in the coming days may and sentiments from Ben S. Bernanke speech may see the pair trade lower.
AUD/USD
The Australian dollar has shed its gains as the BOJ halted speculations of additional stimulus. Consequently, we still remain bearish on the pair as traders wait to see the RBA decision on interest rate. In its meeting last month, RBA decided to wait for more economic data to decide whether it should review the interest rates downwards. The slowdown in China economic growth is expected to weigh down on the Aussie while we expect positive data from the US in the coming few days. This will push the cross downwards through to next week.
USD/JPY
Yen rose after Bernanke’s speech on Monday where he indicated that the economy still needs to be natured as it is not yet out of the crisis. In addition, the BOJ decided to pause its intentions to add make more bond purchases to weaken the yen. The USD/JPY pair is expected to remain neutral as we expect to see positive sentiments of the US economy as well as positive US reports.
USD/CHF
The greenback has increased against the Swiss Franc in the last few days and we expect to see this bullish run extended into the next week. The SNB is currently struggling to keep the 1.20 cap it had set for the euro.
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