Inability to break lower than 1.34 and to be sustained under 1.97 versus
the pound the greenback suffers now the interest rate outlook as the
limited market buying of the growth solid pace and good economic data
stories. .6% GDP rate in the first quarter was enough to limit the dollar
buying at these levels after the week of the first week of the month as
the ISM and jobs data.

Now and ahead of this week ECB meeting to hike and its press conference
which should gives reasons to this hikes can support the single currency
further and gives a bright vision of the interest rate and growth outlook
in Euro zone.

God willing, We can see further rooms above 1.35 this week and ahead of
this meeting.

Further good data from Euro zone and UK can sustain this wave. Also a
wider trade deficit in US in April is a serious waited release. The market
can sell the greenback at this current market sentiment especially as it
looks technically weaker on its recent mentioned resistances holding.
In this same time the Japanese currency can face problems as the market
focus is in the interest rate outlook which is not in the benefit of the
Yen.

Best wishes

FX Consultant

http://www.fx-recommends.com