Talking Points:

• Many of the FX and capital market benchmarks are in close proximity to major technical levels

• Risk trends will be the most immediate fundamental concern after the S&P 500's tumble this past week

• Interest rate forecasts will draw considerable market interest with US, UK and Eurozone CPI data

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We are within arm's reach of major technical levels across the market's spectrum. EURUSD is moving fast on 1.4000, USDJPY stands just above 100 and the S&P 500 has collapsed towards 1,800. Should momentum hold out or another well-timed volatility spark ignites next week, we may quickly transition from breakout to trend development. Yet, upgrading the market's motivations is no small feat. A dominant theme needs to converge expectations to a singular view. A self-generating risk cycle can accomplish the task, but has proven difficult to engage. Otherwise, there is key inflation data on tap, but a clear time frame with which to jump start the move. We assess our current bearings and trade opportunities for next week in the weekend Trading Video.

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