The main events of the week May 28th – June 1st, which may have a significant impact on the Dollar’s positions, will be the publications of the regular reports for May on the labor market from the U.S. Bureau of Labor Statistics (June 1st) and on PMI from the Institute for Supply Management (June 1st). The April data disappointed investors and triggered sales on the stock markets and the strengthening of the Dollar, increased by a new round of the debt crisis in the Eurozone due to the political events in Greece and France. However, participants can ignore this data. We believe that next week, the Dollar has the potential to continue rising against all of its competitors, except the Japanese yen.
The European currency will not be able to get any support from the macroeconomic statistics due to the absence of significant releases in the economic calendar. However, the situation is so tense around Greece that it can explode at any moment. A high uncertainty level will continue to put pressure on the quotes of the EUR/USD pair. We believe that within a week it has a good chance to test a technically important level of 1.2320.