Dollar set to test key levels this week

The US dollar has strengthened as markets have re-priced following the more hawkish language from the Fed. This means the dollar is set to test some key levels this week. Traders have needed to have a significant rethink of expectations of the next rate hike from the Federal Reserve after the FOMC meeting minutes were published last week. We discuss the implications that this shift in stance will have for monetary policy in the coming months. Does it mean that June is now nailed on for the next rate hike, or is July the more likely month that the Fed makes its move? We discuss what factors could need to be seen in order to drive the move and also the key factor that could be the fly in the ointment for those who are expecting June. In the week ahead what are the key economic announcements that could help to mould the market moves and what are the key factors to focus on?

What is the outlook for forex markets and will the recent dollar strength continue? We look at the key levels that major markets look set to test. There is also a technical analysis of key major pairs such as Euro/Dollar and Dollar/Yen. How are equities markets set up moving into the new week? What is driving the weakness in recent weeks and is it set to continue? Also what are the key levels on the major markets to watch? There is also a technical analysis of the market that the Federal Reserve is the most interested in, the S&P 500, in addition to the FTSE 100. We also take a look at the key movements in commodities and bond markets and the impact of the stronger dollar. We finish with a technical analysis of Gold and Brent Crude oil.

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