As the US Dollar Index breaks through key levels, will this sell-off continue? The weakness in the greenback has been a key factor that is impacting across asset classes in recent days and weeks. There has been a host of factors and the mildly hawkish lean in the FOMC statement last week has failed to put the brakes on the sell-off. Not only is the market reacting to the failure of the Bank of Japan to further ease its own monetary policy, but the market is also looking towards the US domestic data as a key factor. The Fed continues to view the prospect of rate hikes as a data dependent argument and if recent economic data is anything to go by then the prospects of a rate hike coming at the next FOMC meeting in June seem to be dwindling. This means that the economic data will once more be increasingly key and this week we have a crucial batch of tier one economic data for the US culminating in yet another crucial Non-farm Payrolls. So what do we need to be on the lookout for?
In forex markets there have been some key moves on the major pairs amidst this dollar weakness. We look at the outlook on the key moves, taking a technical analysis view of the major markets that have been so crucial, looking at Euro/Dollar and Dollar/Yen. Are the profit takers beginning to move in on the equity markets as the recent slide on markets starts to become more pronounced. What are the technicals showing us on the German DAX Xetra and the FTSE 100? Finally we look at commodities with the moves on precious metals such as gold and silver, but also oil. We finish with a technical analysis of gold and Brent Crude oil.