Filed Under:
Forex pairs in this Article » USD, EUR/USD, USD/JPY, GBP/USD, EUR/JPY, GBP/JPY, AUD/USD
Talking Points:

• A plunge from EURUSD, market-wide drop in yen crosses and S&P 500 slip suggests risk aversion

• Key event risk - ECB decision, US GDP - was the source of Thursday's volatility

• NFPs may feed Taper speculation, thereby gouging risk trends and finally provide a risk unwind

Sign up for DailyFX-Plus to have access to Trading Q&A's, educational webinars, updated speculative positioning measures, technical setups and much more!

This past trading day offered up the most action we have seen in months. Now, can Friday's NFPs adapt this surge in activity into a concerted risk-based trend? Looking at the top market movers this past session, there was evidence of a common driver in speculative positioning. With the S&P 500 sliding alongside EURUSD and the Yen crosses, we see a move that finds common ground in 'risk trends'. However, there was hesitation from the benchmarks (US equities) rendered steadfast by extracurricular means (stimulus), while individual event risk offered well-placed sparks in other key areas. Confidence is shaky, but a full-scale shift still requires a push. We discuss what to look for and what the trade scenarios are tomorrow in today's Trading Video.

Sign up for John’s email distribution list, here.

comments powered by Disqus
Trading Center