Major Currency Outlook for Next Week

By TraderVox.com

Tradervox (Dublin) – The euro has been under pressure all week as traders seek express concerns over the fate of Greece in the trading bloc and other political sentiments from the region. The dollar and the yen have enjoyed most of the fears in the market with demand for safe haven currencies emerging. The pound has kept its grounds against the dollar losing only marginally over the week. The trend this week has been bullish for the dollar and yen while pound and euro has been majorly bearish. Let us see what next week holds for the major currencies.

EUR/USD: this pair is set to close the week lower than psychologically significant 1.30 level. If the euro/dollar pair closes the weak below 1.30, then we are likely to see this pair breaking the uptrend support during in the coming week especially if the industrial Production data to be released on May 14 does not generate positive sentiments for the euro. Another report that will affect this pair is the Gross Domestic Product report for Germany which is expected on Monday 15. The outlook for the EUR/USD pair in the coming week remains bearish where we might see a break of the uptrend support.

GBP/USD: this pair has been under pressure following concerns in the British economy. The BOE meeting decision expected to be released today has kept the pair on the low. Trade Balance and Goods Trade Balance report to be released in UK on Monday are the major reports that will determine how the pair will open the week. The pair is expected to remain at mid 1.61 through next week and we have a neutral outlook for the pair.

USD /CHF: the cross has been moving downwards as traders choose the Swiss franc over the dollar as the better haven. Producer and Import Prices report to be released on Sunday May 14 in Switzerland will have a bearing on how the pair opens the week. We have a bearish outlook on this cross positive reports for the Swiss Franc and demand for safe haven currencies are expected to push the cross downward.

USD/JPY: the demand for safe haven is expected to keep this cross under pressure. However, BOJ is keen on keeping the pair above 80-level mark. Domestic Corporate Goods Price Index to be released on May 13 will determine how the pair opens next week. We remain neutral on this pair over the course of next week.

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