 Welcome to CMC Markets on Tuesday the 7th of June and this market update hasn't taken long for equity markets to shrug off the disappointment of Friday's US payrolls report number of 38,000. Well below expectations more importantly was the downward revisions to the March and April numbers of 59,000 and I think what's more concerning I think is the deterioration in the labor market conditions index, the Fed's labor market conditions index to levels last seen in 2009 yet a lot of Fed policy makers seem completely unperturbed by this. That being said equity markets are starting to push back towards the top end of their recent ranges. The S&P 500 is pretty much within touching distance of its all-time highs even though the Dow Jones is lagging significantly behind it, we're pretty much pushing higher across the board on the back of a weaker dollar, the FTSE 100 is back above 6,300, Brent Crew prices are back above $50 a barrel and the prospect of two US rate rises this year I think has pretty much receded into the distance irrespective of what Fed policy makers would have you believe. So what does that mean for equity markets and currency markets in general? I think it certainly means in the context of where the dollar goes next it's unlikely that we're going to see the dollar push significantly higher. An awful lot of people have been speculating that the US dollar is likely to continue to outperform its peers but I think that's predicated on a belief that the Federal Reserve is likely to raise rates two or three times within the next 12 months. I still maintain that is highly unlikely and the long dollar trade does appear to be a slightly crowded trade so in that context I think we're probably more likely to go lower than go higher. So what does that mean in the context of where we go to next with respect to say for example the UK 100? Well for the past few months we've been going sideways and the likelihood is we're going to continue to do so. We're still well below the April highs of 6,400. We have managed to push back above 6,300 but for the past two to three months we've been in a range between 6,050 and 6,400. I don't expect that to change significantly over the course of the summer months. In terms of the pound against the dollar that's still being buffeted by the headwinds from the EU referendum campaign and all the misinformation that's being basically peddled around from both sides but certainly what we can see from this cable chart here is the fact is we're in a range in the pound against the dollar. That's not likely to change between now and the 23rd of June though it's quite likely we will see bouts and pockets of significant volatility. We've already seen it this week already with a poll that put the lead campaign in front early yesterday when we saw the pound drop quite sharply in Asia trading all the way down to around about 143.5 and then early this morning we got another poll putting the remain campaign slightly in the lead and now we're back above 146. Such are the vagaries of the currency markets at this point in time or you as traders need to know is that currently we're in a range sterling looks well supported at 143. The significant area of resistance around 147 is designated by the May highs here and here and the 200 day moving average here. I think it's unlikely that we're going to get see a significant move higher or lower until such times as the referendum uncertainty is out of the way. So expect more volatility expect more choppiness but I don't expect to see us break out the ranges that we've been in over the course of the past five to six weeks. Same applies to euro sterling it's a similar sort of story but again it's very much technically driven if we look at 79.30 and the May highs that's been a significant pivotal level in terms of bullishness and bearishness. We saw it here where it acted as a cap there acted as a cap there acted as a support here acted as a resistance here and once again it's acting as a resistance here. Also important to note that it's also the 200 week moving average so it's a significant resistance barrier on euro sterling and it's important to bear in mind when you're looking to put trades on. Also what we've seen here is a significant pullback from the sterling losses that we saw in the wake of the leave poll yesterday further remain poll today it's in the ECB's interest to keep a lid on the euro so again expect to see the euro sterling buffeted by sellers around about 79.30 and buyers around about the 76.80 76.90 level similar sort of thing on sterling yen as well and again I've highlighted the key support and resistance levels on this chart here we can see it clearly played out the march highs and the may highs around about 164 and then you've got significant support area around about 153 and a half. So that's it for this week once again thanks very much for listening this is Michael Euston talking to you from CMC Markets.