Outlook on FTSE 100, DAX 40 and S&P 500 amid BoE and Fed talk

The week has got off to a subdued start for EUR/USD, with the Dollar likely to set the trading pace

AUD/USD bullish potential remains, and AUD/NZD bounces off a zone of support ahead of the Reserve Bank of New Zealand’s rate announcement and RBA minutes

The U.S. economic calendar will be relatively quiet in the coming week, allowing recent market movements to potentially consolidate. Meanwhile, the release of April inflation data in the UK could introduce increased volatility to UK assets.

The article examines the short-term outlook for the U.S. dollar, honing in on two key FX pairs: EUR/USD and GBP/USD. The piece also provides analysis on recent price action dynamics and fundamental drivers.

In a week characterised by a distinct lack of high impact data, conditions favour a dollar recovery. Lower anticipated volatility typically seeks higher yielding currencies (USD)