Trading Video: EURUSD Reversal or GBPUSD Breakout?

By DailyFx | June 19, 2014 AAA

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.

comments powered by Disqus
Related Forex Analysis
  1. US Session recap: USD consolidation ahead of FOMC
    Forex News

    US Session recap: USD consolidation ahead of FOMC

  2. A market in a technical snap-shot - RBS
    Forex News

    A market in a technical snap-shot - RBS

  3. GBP/USD sitting pretty despite lower CPI’s
    Forex News

    GBP/USD sitting pretty despite lower CPI’s

  4. EZ gave mixed data at key timings - BBH
    Forex News

    EZ gave mixed data at key timings - BBH

  5. EUR/USD in a doji and immersed in uncertainty
    Forex News

    EUR/USD in a doji and immersed in uncertainty

Trading Center