Dollar, Risk and Commodity Trends Will Clamber for Fuel Next Week

Talking Points:

• It will be difficult to keep last week's heavy volatility and nascent trends stoked moving forward

• Of the key themes under power currently, the Dollar's swing is most at-risk with Yellen testimony

• Risk appetite (equities, Yen crosses), commodities and Pound will have to find power outside of the calendar

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This past week ended with more than a few exceptional market trends. A ramp in Dollar volatility that nearly saw a break from its multi-year bull trend was righted by an encouraging labor report. The rebound in global equities faded back into troubling support. And, volatility for key commodities (oil and gold) is generating greater speculation of impending trend changes. Will these major moves maintain traction into the upcoming trading week with a shift in scheduled event risk? With the exception of the US Dollar which will be pulled forward to Fed Chair Janet Yellen's testimony in congress Wednesday and Thursday, there is a tangible downgrade in the profile of the scheduled event risk. This can prove either a burden in stealing the wind from market, but it can also be a boon. Without a milestone to hold off for, trends can often develop under speculators' own power. What level of activity should we prepare for and what trends should be monitored. We discuss that in this weekend Trading Video.

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