The euro (EUR) commenced the week slightly higher in the Asian session, as Japanese banks are closed in observance of the Marine Day. The eurozone financial calendar for the week is relatively lackluster and market participants should anticipate that any headlines concerning the Spanish banks will affect the single currency. There are reports that the European Central Bank (ECB) is contemplating imposing losses on senior bondholders during the recapitalization of Spain’s banks, something it originally opposed. The German parliament will vote on the Spanish banking system bailout on Thursday, with Chancellor Merkel expressing her confidence over the weekend that the vote will pass.
The US dollar (USD) appears indecisive as markets open ahead of May’s Retail Sales release. The highlight for the week ahead is Federal Reserve Chairman Bernanke testimony before the Senate Banking Committee on Tuesday and before the House Financial Services Committee on Wednesday. The Japanese yen (JPY) has been strengthening against the US dollar but a break and hold below the 79.00 area is needed for lower lows.
Oil opened at 86.64 dollars a barrel from 86.72. Gold (XAU) opened at 1590.93 US dollars an ounce from 1588.95. Against the euro, gold rose to 1297.77 from 1288.02 an ounce. Silver (XAG) opened at 27.2650 dollars an ounce from 27.2675.
The US dollar (USD) appears indecisive as markets open ahead of May’s Retail Sales release. The highlight for the week ahead is Federal Reserve Chairman Bernanke testimony before the Senate Banking Committee on Tuesday and before the House Financial Services Committee on Wednesday. The Japanese yen (JPY) has been strengthening against the US dollar but a break and hold below the 79.00 area is needed for lower lows.
Oil opened at 86.64 dollars a barrel from 86.72. Gold (XAU) opened at 1590.93 US dollars an ounce from 1588.95. Against the euro, gold rose to 1297.77 from 1288.02 an ounce. Silver (XAG) opened at 27.2650 dollars an ounce from 27.2675.
OUTLOOK
| Pivot | Preference1 | Sentiment2 | |
| EURUSD | 1.2505 | LONG @ 1.2215 | 44% of deals buy EUR |
access extensive market analysis 1data generated by Trading Central™, 2data obtained from easy-forex Inside Viewer™
Calendar
| Currency | Time (GMT) | Event | Forecast |
| USD | 12:30 | Retail Sales m/m in May | 0.1% |
EURUSD
The euro (EUR) plunged against the US dollar (USD) over the past week, in line with its monthly downtrend. The pair rose to 1.2323 on Monday but fell for the rest of the week, recording a low at 1.2189. This was 134 pips, a weekly drop - in percentage terms - of 1.1%. It will be interesting to see whether the pair will record lower lows.
