During morning Asian trades on Friday, May 1st, both dollar and euro increased versus the yen, as it turned out that swine flu fears of the foreign exchange market are in reality not as bad, as were expected.
Many dealers claim that rising level of the American currency will not last long, because many coming up events, that are due to happen in the United States and in Europe will make many investors sell both the greenback and the euro again.
As for the Unites States of America, it is expected that next week it would release the stress tests results of the US banks, which should be able to indicate, if the American banking institutions will need more capital in order to be safe from economic deterioration.
Many market traders have been optimistic regarding the American economy in the recent days, but it is very likely that the stress tests will not be completely positive. Movement of risk aversion can easily be caused by any kind of negative turnouts of the tests. It is an already known situation, that the Citigroup bank and the Bank of America will most likely need to gain more capital, according to prior results of the stress tests.
The Euro is as well very likely to be pushed down due to next week events, as the Central Bank of Europe is due to announce its policy settings.