Janet Yellen and the ECB in focus for traders this week

Markets remain volatile as traders continue to try and establish the signals coming out of the Federal Reserve over its path towards increasing interest rates. This rocky road has been driving some significant moves on global markets. The market has dialled back on expectations of a rate hike in 2015 (the current expectation suggests that the most probable month for lift off is now March) and this has meant that traders have been required to reprice their expectations of the dollar. The market is becoming increasingly tied to surprises in US economic data and there is little reason why this will not continue for the time being. The initial outlook this week is coming in reaction to the growth data out of China, however the economic calendar is then dominated by a speech by Janet Yellen and Thursday’s meeting of the European Central Bank. How will these events impact on traders?

There have been some significant moves in the forex markets recently and with the US dollar as the driving force, some key levels are under pressure. What are the key factors to watch out for this week ? There is also focus on the technical outlook of two major pairs, Euro/Dollar and Dollar/Yen which are testing key levels. What is moving the key equity markets and how is the crucial earnings season in the US progressing? Furthermore alongside a medium term technical analysis of the S&P 500 and the German DAX, we look at the key levels that need to be watched across the major indices. The gold price has made a remarkable recovery, but how sustainable is the move and is it likely to continue? The report finishes with a technical analysis of gold and also of Brent Crude oil.