Next week should see the dollar resume weakening in light of mostly bullish events for the Euro and GBP and likely bearish events for the USD. The ECB is expected to hold rates steady when it announces its decision on Thursday, but to also indicate that another 1/4 point rate hike is coming at the June meeting. The BOE is unanimously expected by analysts to raise rates 1/4% to 5.50% at their meeting on Thursday. The Fed, in contrast, is expected to leave US rates steady at 5.25%, though they may tweak the statement language and restore the 'additional firming may yet be necessary' language.   Full text »

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