Despite the sanguine stance of the Fed, the dollar continues to advance versus European currencies. With little help for the euro on the horizon there is a chance for more.

Gilts did open above 114.90 to push back up to 115.30/32. We did blip to 115.42 but only momentarily before dipping lower.

EURUSD broke below the lower border of the price channel on 4-hour chart, suggesting that a cycle top has been formed at 1.3817 level on 4-hour chart and the bounce from 1.3435 has completed.

As we begin trading this week, the pair continues to be weak after the selloff late last week. Having broken below support at 1.3540 a test of range lows is quite possible.

Other than Friday, the stock market had a good week continuing to push above the 1150 mark and closing out the week at 1159.90. Support now comes in at 1150