DailyFX.com -

Talking Points:

• In the aftermath of the FOMC; the dollar, risk trends and market conditions have taken different paths

• FX Volatility has dropped to a record low with short-term readings hitting lows nearing 4 vols

• Between appetite for return and yield forecasts, EURUSD and GBPUSD present different trade conditions

Sign up for the new Volume and Transactions Indicators to see activity behind the FX market!

It is healthy for there to be some measure of 'fear' in the market to encourage market participants to make prudent investment decisions. Yet, as the exposure to high-return assets and excessive use of leverage would insinuate, there seems to be little to no fear left. Volatility measures - good proxies for anxiety - further collapsed across most asset classes. However, nowhere was the complacency greater than in the FX market where short and medium-term measures hit record lows. Traders remain exasperartingly vigilant of a normalization in activity levels, sentiment and positioniong; but there is trading that can still be done in the meantime. EURUSD and GBPUSD are just two of the more interesting pairs. We discuss current conditions and trade options in today's Trading Video.

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

Related Articles
  1. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  2. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  3. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  4. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  5. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  6. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  7. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  8. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  9. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  10. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.

You May Also Like

Trading Center