- US equities have posed bullish breakouts from congestion patterns that have been building over the past few months, and perhaps not coincidentally, this has happened as the US Dollar has finally started to soften after what became an aggressively strong three-week-run.
- The US Dollar produced a bearish evening star pattern yesterday around the release of April inflation figures, and while inflation remains above the Fed’s target and primes the bank for a hike in June, the fact that the data printed in-line with expectations may have allayed fears that were keeping pressure around US stocks. Higher forces of inflation forcing faster rate hikes presents a quandary for bond markets, and this could also make the operating environment for American corporates considerably less-friendly. With that theme taking a step back from the ledge in yesterday’s inflation report, the potential re-opens for a continuation of trends in USD-weakness, and US Equity strength.
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Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator.
Dow, S&P Breakouts as USD-Weakness Shows Up
It’s been a fairly climactic week across global markets, and for US equity traders the release of that building tension has worked out in a positive way. While the S&P 500 and the Dow had