Hot. Hot. Hot. 🔥🔥🔥

US labour market conditions continue to stay strong and that sent markets for a ride on Friday with bonds selling off heavily and the dollar recovering strongly. But does that really change the Fed outlook all too much? In all honesty, I don't think so but perhaps markets are now heeding some caution as Powell & co. might just deliver on more hawkish expectations.

The dollar is now making a stand and will we be able to see that momentum keep going?

  1. EUR/USD backs away from a test of 1.1000
  2. USD/JPY jumps above 130.00, breaks trendline resistance and lower highs, lower lows pattern
  3. GBP/USD inches towards 1.2000 after rejection at December highs
  4. AUD/USD drops back under 0.7000 as August highs hold
  5. NZD/USD fails at another run to get above 0.6500

Meanwhile, equities also suffered a setback at the end of last week as the dip buying momentum faded late in Wall Street trading. That could be a blow to short-term sentiment, especially with the S&P 500 having ran close to a test of its 100-week moving average.

The next few weeks/months is going to be a raging debate on "who is right?" basically. Central banks or markets? It's all about the data now, as such.

What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.