The Dollar continued its resurgence last week to drive EUR/USD and GBP/USD lower. I expect USD strength to continue short-term. The bullish news out of the US with better than expected inflation data gave weight to the markets view that the Fed will raise interest rates sooner rather than later. This pushed EUR/USD under 1.10 the figure and I’d expect a further move lower now. With Greece due to make repayment to the IMF of 308M EUR on June 5th (will they won’t they) and further payments throughout June totalling circa 1.6 Billion EUR I would expect this to translate to further EUR weakness. I think Greece will smash the coin jar and cobble together the initial payment and then on June 12th (next repayment date) I think they’ll have run out of options.

Range for EUR/USD this week

I’d suggest 1.0750-1.0950 will be the range this week.

If you’re a USD seller please do get in touch and we can discuss realistic levels to aim for with an implementation of a market order.

Range for GBP/USD this week

We don’t have much out of the UK this week until Thursday so I would expect Sterling to come off against USD. If you are a Dollar buyer you may want to place some market orders in case we have some spikes higher on an intraday basis. I don’t think there will be much of a push higher so market orders are the best way of achieving the best rate at the best possible time.

Dollar seller? Fill your boots. Contact me or one of the trading team and we’ll discuss levels to aim for.

I’d suggest 1.53-1.55 will be the range this week.

Range for GBP/EUR this week

The move on Sterling/Euro will be in the hands of any EUR noise this week. There isn’t much chat around Sterling until Thursday. I think we may push a little higher although not substantially and then we’ll see it drop off and be back under 1.40 again. If you are a EUR buyer I would suggest purchasing as many EUR as you can at these levels. 1.40, in my opinion, is above fair value and won’t be there end of year so look at purchasing on Spot or Forward contract.

I’d suggest 1.3950-1.42 will be the range this week.

If you have any questions please do let me know.

Have a great week.

Written by Liam Alexander