Brown Brothers Harriman - "The Dollar-Index did rally in the second half of last week, but ran into a wall of offers near 82.50 a key retracement objective of the previous week's drop. Provided this area holds, we are more inclined to see it fall toward 81.20 and maybe 80.70.
The decline in the euro in the second half of last week largely held a trend line drawn off the April 4 and April 24 lows. The trend line comes in near $1.3070 on Monday and $1.3125 by the end of next week. Initial resistance is see near $1.3160 and then $1.3240. The euro has not managed to finish the North American session above $1.32 since Feb 20. Good demand for euros around $1.30 has spurred talk of central bank interest.
(...) Short-term speculative sentiment remains wholly yen negative and technically the market looks poised to try again at the JPY100 level. A break of it could see a quick move toward JPY101.40. Now only a break of JPY97 would dampen the constructive technical tone. It has taken a bit longer than we anticipated, but sterling has reached our $1.56 objective, but it does not look as if the move is over. The next target is near $1.58, while a break of $1.54 would suggest a top is in place.
(...) The Canadian dollar recovered from the knee-jerk sell-off on news that the new central bank governor sounded a bearish note when talking about the need to boost exports to reinvigorate the economy. The US dollar slipped as we anticipated last week into the CAD1.0070-CAD1.0100 area. Our next target is near CAD1.0020."