In the short term, the euro may test the level of 1.1150
A. Merkel's statement about the overvalued euro exchange rate, which is undesirable for Ireland and Spain, put pressure on the EUR/USD pair testing the level of 1.1150 last Friday.
The US Federal Reserve meeting will be the key event this week; the regulator will introduce new macroeconomic projections for the United States during the meeting. Due to a weak business activity in the US in Q1 2015 market participants expect a rise in the federal funds rate no earlier than in Q3 2015. In the short term, the US dollar may be supported by the May data on industrial production and consumer price index in the United States. In the short term, the EUR/USD pair is likely to test the level of 1.1150 again.
Lowering of the S&P outlook on the UK credit rating from "stable" to "negative" will continue to put pressure on the pound. According to the S&P analysts, a referendum on the UK's possible exit from the European Union could lead to a decrease in the country's sovereign credit rating, which remains at 'AAA / A-1 + " for now. This week, it is worth paying attention to the UK data on inflation, unemployment and retail sales. During the week, the GBP/USD pair may decline to the level of 1.5490.
If the upward trend in Japan's trade balance is confirmed in May, demand for the yen will rise. In the short term, the USD/JPY pair may be reduced to the level of 122.50.
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