Week Ahead: Dollar in the crosshairs

The first full trading week of June is packed with high-impact events.

A volley of market-moving events, the US May jobs report, the OECD economic outlook and speeches from financial heavyweights set the stage for serious volatility.

One instrument sits right at the centre of it all - FXTM's USDInd.

Note: The USD Index tracks how the dollar is performing against a basket of six different G10 currencies, including the Euro, British Pound, Japanese Yen, and Canadian dollar.

For weeks, the USD Index has been stuck…coiled inside a wide range, going nowhere fast. Same story, different day.

But here are 4 reasons why things could change next week:

US-Iran tentative deal: A tentative ceasefire extension has given global markets a cautious exhale, but Trump hasn't signed yet. Nevertheless, this development is positive enough to quell fears over the conflict in the Persian Gulf. Still, sentiment remains fragile and this could translate to dollar volatility.

US May NFP report: The May US jobs report on Friday 5th June may provide critical insight into the health of the labour markets. 93,000 jobs are expected to have been created, compared to 115,000 in the previous month. A strong report may fuel bets around Fed hikes. The same can be said vice versa.

Heavyweights step up: It's a packed week on the speaking circuit. Fed officials lead the charge, but the real intrigue lies elsewhere. BoE's Andrew Bailey, BoJ Governor Kazuo Ueda, and RBA Governor Michele Bullock are all due to speak, and any signal on rates, inflation, or policy direction could move the USDInd.

Technical forces: A solid breakout and daily close above 99.50 could trigger an incline towards the 100.00 and 100.67. Weakness below 98.90 may open doors toward the 50 and 200-day SMA.