DailyFX.com -

Talking Points:

• A change in market conditions is likely stirring more deeply than just surface volatility on headlines

• Each short-term trigger that we meet reminds investors of extreme market positioning

• The S&P 500 will be one of the key signals, but before it gives Yen crosses will lead the way

See volume behind the majors during the NFPs and ECB rate decision to gauge your trading approach using the free FXCM Real Volume and Transactions indicators.

Is there a deeper well of change behind the markets than just this past week's headline-derived swell in volatility? We have seen short-lived panics quickly squashed by opportunistic traders many times over the past months and years, with conditions ultimately returning to complacency and an increasingly stretched reach for return. Yet, rather than focus on the ripple, the underlying current is starting to turn. The pull of a 'return to norm' is exposing investors' leverage to risk and finding different benchmarks for sentiment on divergent paths. What should we watch for and where are the trading opportunities? We discuss this in the weekend Trading Video.

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

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    USD/JPY remains in the bear's hands on Greece debacle

  2. Forex News

    Trading Leverage – A Real Look at how Traders May Use it Effectively

  3. Forex News

    Webinar: Greece Charges Euro Gap & Snapback- USDJPY Remains at Risk

  4. Forex News

    USD/JPY challenges lows near 122.40

  5. Forex News

    USD/JPY approaches daily lows as US dollar retreats

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!