 Good morning and welcome to CMC Markets on Wednesday the 18th of May and this quick market update. Slightly soft to start this morning on the back of those comments from a couple of Fed officials last night about the potential for two to three rate rises this year. The dollar as a result of those comments has pushed higher. It has acted as a little bit of a weight on equity markets more broadly and all of the gains that we saw on Monday have been pretty much given back. We do have a few minutes later this evening but first and foremost we need to digest the unemployment data this morning out of the UK as well as the latest wages data and by and large it was a pretty positive affair. That rate stayed steady at 5.1% we saw a small decline in April jobless claims and average earnings came in round about the 2% level which in the wake of those weaker than expected inflation numbers yesterday I think can broadly be construed as fairly positive. That's certainly being reflected in the performance of the pound this morning in early trade. Certainly against the dollar it is suffering a little bit on the back of those comments from those Fed officials last night namely Mr Kaplan from the Dallas Fed, Mr John Williams from the San Francisco Fed and Dennis Lockhart from the Atlanta Fed. I think personally the risks towards more than one rate rise this year still remain very much to the downside I think markets are getting slightly ahead of themselves that being said we are getting a little bit of a push higher in the dollar and that's basically weighing on currency markets across the board it's a slightly different story against the euro we are still potentially pushing towards that neckline support on euro sterling around about 77.80, 77.75, 77.80 so that's a very very key support level on the downside certainly on the daily charts that does appear to suggest we could get a test of that level over the course of the next few days on the four hour charts it looks less conclusive we've had a little bit of a spike lower which ultimately on the basis of this chart doesn't look as if it's going to be sustained in the short term but given that we've broken below this series of support levels here at 78.60 I think euro sterling needs to stay below this resistance level here at 78.60 to keep the downside pressure that's currently been taking place over the last few days to keep that downside pressure intact so 78.60 resistance on the top side around about 77.80 on the downside looking slightly ahead we've seen a rebound in the dollar that's being reflected in our dolly end chart here pushing against the resistance level from those lows that we that we that we painted in around about the end of February so pushing against that around about 109.70 we could spill over to around about the 110.20 area which is where our cloud resistance level is and which has acted as a decent resistance all the way down from the peaks that we saw in February so that's certainly worth keeping an eye out for in the wake of a potentially hawkish set of minutes when they get released later today so those are the key levels for today around about 109.70 on dolly end and just above that at 110.20 euro sterling 78.60 and 77.80 on the downside