This week, the euro could test the 1,153 level

Last week, negative April data were published on retail sales, industrial production, and the Producer Price Index in the US. Thus, at the start of Q2 2015, the health of the US economy remains weak, and the probability of a June increase in the federal funds rate is close to zero.
At the end of this week, attention should be paid to the April inflation data in the US and to the Bank of Japan meeting. The Japanese regulator will probably leave the amount of asset purchases unchanged, which will lead to a decline in the US dollar to 118.5 yen.
This week, the statistics on the business activity indexes in the eurozone's manufacturing and service sectors could provide support to the euro. During the week, the EUR/USD pair will probably test the 1.153 level.

Despite its overbought value, the GBP/USD pair could rise to the 1.59 level in the short term. The inflation statistics and the data on retail sales in the UK may support the pound.
If the HSBC business activity index in China's manufacturing sector comes close to the 50 p. level in May, the AUD/USD pair could gain a foothold above the 0,815 level.

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