Talking Points:

- 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[1] 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.

- DailyFX Forecasts have been updated for Q2, and are available from the DailyFX Trading Guides page[2]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[3]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[4].

Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[5].

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[6] and the Dow had

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