EUR/USD 1,4235

The EUR/USD reversed sharply on Friday, erased losses and posted the biggest weekly close since January of 2010. The pair did not reach fresh highs over the week but finished around 1.4220/30, near 2010 highs that lie at 1.4245/50.

The common currency rose more than 150 pips in the last trading hours of the week, after being able to hold above 1.4000.

The Danske Banks notes that the Euro continues to be supported despite European debt concerns: “Risk appetite and not least relative rates are still the main supportive factors for EUR”. Danske analyst continue to forecast EUR/USD at 1.46 in three months’ time.

The Euro also finished the week higher against the Yen and its European rivals. The main event next week will be the European Central Bank rate decision. Expectations are for a rate hike of 25 basis points.

S&P cuts Ireland to BBB+, outlook stable Fed's Plosser: Strong rebound in economy, inflation may require aggressive policy action Time to tighten may not be a long way off Non-farm payrolls rise 216,000; unemployment rate dips to 8.8% from 8.9% in March Greek finance minister: Deficit will be higher than forecast--Bloomberg Australian Treasurer: Natural disasters, Japan will have big impact on budget Fed's Fisher: Fed may have done too much in reliquifying economy Fitch places Ireland on review for downgrade ISM 61.2 in March from 61.4 in February; consensus was for 61.0 Fed's Dudley: No reason to reverse course on policy; must not be overly optimistic on growth; not out of woods yet Fed's Lacker: Rate in hike in 2011 would not be surprising; must be alert to possible rapid withdrawal of monetary stimulus Fitch downgrades Portugal to BBB-; outlook negative S&P 500 closes at 1332, up 0.5% US 10-year note reverses early yield gains on strong US data after dovish Dudley comments Oil closes at 30-month high of $108.14 Fed's Fisher: Must stop accommodation; policy normalization makes good sense

source: fxstreet.com