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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

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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.

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