The euro ended the week down against the US dollar, but the bulk of the pair’s decline occurred on Friday following the release of better-than-expected US non-farm payroll results.

Traders should keep an eye on major equity indexes like the S&P 500, as a rally above its May 8 high of 930 would suggest that risk appetite may be high enough to lead FX carry trades higher.

The British pound could continue to rise next week as an uneventful economic calendar offers little event risk to slow the currency's momentum.

The vital, Japanese export sector is still weighing the economy down.

Looking ahead to next week, Federal Reserve Chairman Ben Bernanke will speak on Monday on the stress tests, and regardless of the subject, his comments tend to be highly market-moving.

The Japanese Yen is likely to see a nearly empty economic calendar give way to risk sentiment as the dominant force guiding price action once again.

The euro finished the week marginally higher against the US Dollar, but it extremely choppy price action makes it difficult to anticipate continued gains through near-term trade.

The Japanese yen is likely to fall in with trends in risky assets in the week ahead as the economic calendar offers little that has already been factored into the exchange rate.

Japanese economic developments have had relatively little effect on USD/JPY price action.

There is so much event risk looming next week for the US dollar that it is difficult to discern what the primary fundamental driver for the world’s most liquid currency will be.