By TraderVox.com
Tradervox (Dublin) – Most commodity related currencies have continued to decline amid the Europe crisis as safe haven currencies continue to surge. The Greek polls were an important event that gave some hope for the decline pound but talks of Greek exit have overshadowed any positive report from the region. Further, the serious problems in Spain are continuing to push down risk appetite as safe haven demand increases. Here is an analysis of major crosses in the market.
EUR/USD: the pair has so far fallen to almost two-year low due to the crisis in Europe. The pair opened the week with little room for change but Greece and Spain turmoil pushed the cross down. Some of the reports expected to affect the cross next week include the Sentix Investor Confidence and the Producer Price Index. We expect the currency to start the week on a low and we have a bearish outlook for the cross next week.
GBP/USD: the pound has continued to drop against the dollar but it is poised to finish the week on a high. The cross opened the week at 1.5811 but it is now trading at 1.5509 after dropping considerably during the week. Some of the events that will affect the cross include BRC Retail Sales Monitor and the PMI Construction reports. We might see the cross improving over the next week and our outlook is bullish for the cross.
USD/JPY: this is a pair of safe haven currencies which has remained stable over the week but the cross is set to close the week on a low as Japanese yen increased to the highest in three months. Some events that will affect this cross include the unemployment rate report, Nonfarm Payroll figure and ISM Non-Manufacturing report. This pair is poised to remain neutral over the course of next week.
USD/CHF: the cross opened the week on a high but it has remained neutral for the most of the week. Some of the events that will affect the cross include the Swiss Unemployment Rate report, consumer price index, and jobless claims in US. We are expecting the cross to be bullish over the next week.
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