Is the dollar back? Or was Friday's rebound just a bit of a light reprieve? That is going to be a key question in trading this week. Fed pricing has definitely moved up a bit as seen here but it's not enough to suggest a change in the outlook that the Fed will continue hiking beyond May.
But perhaps now, the thing that matters most is whether or not they will stick with their higher for longer narrative.
I outlined some notable technical developments in the euro and pound here, against the dollar. Meanwhile, we are seeing gold lurk back towards the $2,000 mark. European equities are also continuing to be of much interest, with the DAX and CAC 40 rising to its best levels for the year; the latter at fresh record highs.
Earnings season is in focus and that will play a role on equities sentiment this week. For now though, the optimism looks set to continue. Can the DAX hit its November high at 16,290 next? That might be one to watch.
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