The Australian and New Zealand dollars have rallied as risks relating to the EU referendum start to fade. But, it is not time to throw everything into a bet on an AUD and NZD recovery.

The pound / dollar exchange rate has tested 31 year lows at 1.31 but has since bounced to 1.33. However, we should expect a gradual move towards 1.30 say Credit Agricole.

Taking a look at the likely implications for the EUR/USD rate following the UK’s referendum.

The big question is how to trade sterling in the wake of the EU referendum. Silvia Ardagna at Goldman Sachs has updated clients with how she believes traders should play this market. She writes:

With the British pound putting in one of it’s strongest performance in years at the start of Referendum week some analysts are already looking at where to sell the pair.

Barclays have made selling the US dollar / Japanese Yen exchange rate pairing their ‘trade of the week’. In a note to clients the bank says:

The commodity dollar bloc is forecast to struggle this week by analyst Charles Rubenfeld at Morgan Stanley.

Barclays say they expect resistance in the 1.4670 area to cap a move towards 1.4330.

Recent developments in EUR/USD point to a renewed deterioration in fundamentals across our two most important guiding frameworks – flows and real rates.

A potential approach to the sterling-dollar exchange rate is provided by Shaun Osborne at Scotiabank who writes: The GBP is little changed on the day but retains a soft undertone after the jittery…

USDJPY remains heavy but appears to have found a near term base at the 109.00 figure.

The debate over whether the May rally in the US dollar can extend into June rages on. In the ’Yes’ camp are Morgan Stanley.

The resilience of the euro exchange rate complex continues to catch self-confessed ‘dollar bulls’ Goldman Sachs out and they have had to raise their EUR/USD forecasts higher as a result.

The Australian dollar is in focus once more following comments from RBA Governor Stevens. With the AUD under notable pressure UBS consider how far it will likely fall.

The Canadian dollar has been under pressure against the US dollar since the 3rd of May. Of late the uptrend has slowed and appears in danger of stalling.

With light positioning, $/¥'s tactical upside may develop into a bear market rally on policy expectations.

The US dollar continues to surge higher against the Canadian dollar and trades at 1.3117.

Barclays update us with their latest views on the likely technical trade in the major pairs over the short term.

The yen is forecast to exert downward pressure on the USD to JPY exchange rate over coming weeks.

The US dollar has strengthened for two weeks in a row now, but analysts are warning that the rally's limits could be nigh.

The USD/CAD has drifted lower of late, but these dips are likely to remain temporary in nature say CIBC.

The Australian dollar is forecast to extend lower by analysts at Societe Generale who have issued a trade recommendation on how to profit from the move.

Euro / dollar is forecast to decline while a bearish view on pound / dollar is being pared back.

The big event for sterling this week is the Bank of England’s Super Thursday event. This is a chance to profit on sterling’s fall say ING.

While some say the cyclical US dollar rally peaked at the turn of the year Goldman Sachs continue to betray their pro-USD bias. Are they right in their reasoning?