- 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.
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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[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
