Traders added to the bet of a June rate hike by Fed after stronger consumer inflation reading. Dollar surged across the board with Dollar index taking out an important fibonacci level. Benchmark currency yields staged a strong rebound. But stocks were very resilient despite intensify speculation of an early Fed hike and rising yields. Gold also delivered a long-waited upside breakout in spite of Dollar strength.

Back in the currency markets, Yen was surprisingly the second strongest one but momentum has diminished towards the end of the week. Other currencies were mixed with Kiwi ended as the worst performing, followed by Euro and Swiss Franc. Inflation data will remain the focuses this week with CPI from UK, Canada and Japan featured. Also, eyes will be on how FOMC members would react to the current "transitory" surge in inflation.

EUR/USD Weekly Outlook

EUR/USD's down trend continued last week and hit as low as 1.1432. Initial bias remains on the downside this week for 100% projection 1.1908 to 1.1523 from 1.1691 at 1.1453 at 1.1306, which is close to long term fibonacci level at 1.1289. We'd pay attention to bottoming signal there. On the upside, above 1.1512 minor resistance will turn intraday bias neutral first. But overall near term outlook will stay bearish as long as 1.1691 resistance holds, even in case of strong rebound.

EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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