 Hello and welcome to CMC Markets on Tuesday the 24th of June and the weekly market update. And as you can see from the background, slightly different location today, we're at Exchange Square on the CMC Markets sponsored Summer of Sport. And what an impressive layout it is. Over here we've got a football simulator and I'll be having a go at that later to see how good I am at taking penalties. But to start on the here and now, I'm going to be looking at what the markets are going to be doing this week. So we're going to have a quick look at the S&P 500 in the wake of Janet Yellen's comments last week in the FOMC. The fact that US interest rates are going to remain low for quite some time. That has weighed on the dollar. We'll have a look at the effects on the Aussie dollar and the pound with respect to that and the key chart points there. And we'll also have a quick look at the S&P 500 and the DAX. So over the past week, we've seen equity markets continue to make new record highs. The S&P 500 moves ever closer to that magical 2000 level and the DAX once again has popped its head above 10,000 despite rising geopolitical concerns over events in Iraq, the rising oil price and obviously the decision by the Fed last week to come across as much more dovish than the market had expected. So one of the key elements that came out of last week's FOMC meeting was the Fed's policy with respect to inflation. They played it down despite the fact that CPI last week came in at 2.1%. Now CPI is not the Fed's preferred measure of inflation, it's PCE and that's due out later this week. Now we're expecting a reading of about one and a half percent. If that comes in any higher then there I think there's a distinct risk that policymakers are underplaying the risks of inflation to the US economy and that in itself could actually undermine this current rallying risk that we're seeing particularly any S&P 500 and the DAX as well and could well also underpin the dollar. So let's look at some of the key event risks this week. Obviously Iraq is going to continue to be an event risk rising oil prices but more importantly than that we've got USQ1 GDP. Now that's expected to contract even further minus 1.7% that's going to be a key concern but I think overall it's going to be the inflation numbers on Thursday. If they show a much stronger than expected increase from 1.4 to 1.5 then I think it's very likely that we could see a bit of a bounce in the US dollar and I'm going to look at a number of charts with respect to that, it could have a significant effect on equity markets so we're going to look at the S&P 500. There's a potential reversal forming there, the key levels on the pound against the dollar and the key level on the Aussie against the US dollar as well. So let's start with the S&P 500. As you can see on the daily chart in front of you right now I've circled two particular candles. Now they could be potential reversals and there were potential reversals at the beginning of this month because the S&P did indeed drift back from the highs above 1950, found support around about 1925 and now appears to have topped out again around about the 1970 area. Obviously there's still quite a bit of downside potential there and we could certainly see the market drift back towards that trend line support from the April lows and that currently comes in around about the 1925, 1930 area. Let's move on to the Germany 30 and again we've broken above those February highs at 9,800 and that for me is the key level. Once again we're looking at a daily chart, we've struggled to maintain any momentum whatsoever above the 10,000 level and I think that continues to remain key. We really need to gain a foothold above 10,000 to really suggest that we're ready for further gains. At the moment all the sentiment indicators appear to be weak. The PMIs, the IFO, the ZEW, until there's evidence that the German economy is starting to pick up then I think the DAX is going to find it very very difficult to push higher. Now we've talked about the dollar element to this story, there's also a sterling element and that can be borne out by this cable chart. We've heard an awful lot of rhetoric from Mark Carney in particular about the potential for higher rates in the UK sooner rather than later. The key level for me really on a monthly close remains this cable chart, 170, 170, 50. We need a monthly close above 170. Mr Carney was a little bit more dovish at the Treasury Select Committee today and that does seem to suggest that officials on the NPC aren't totally convinced about the need for higher rates anytime soon. I think what they're trying to do is introduce an element of two-way pricing so at the moment while inflation remains low and wage growth remains low, the likelihood of a rate hike this year still remains I think more of an outlier than an actual reality. Let's move on to the Aussie dollar. Now this is probably more of a yield play than anything else given how high RBA rates at Australian rates are relative to US rates so US inflation data could actually be quite key in the future direction of this particular pair. Chinese economic data does appear to be giving some early signs of improvement, that could be particularly good for the Australian dollar, particularly if US inflation data is weak. Significant resistance around about 94, 50, 60. If we break through that then we could see further gains towards 95, 80. People say being a trader is all about psychology, well so is taking penalties. So I'm going to go and give it a go and see if I can get three out of three. These shoots, these scores. And again, so that's it for this week. Once again, thanks very much for listening. I hope you liked the new location. Until next week, this is Michael Houston talking to you from Exchange Square and the Summer of Sport, CMC Markets.