DailyFX.com -

Talking Points:

• Volatility levels have tempered from last week, but speculative interests are still changing

• Yen crosses are the FX tipping point for 'risk' trends, but the Euro has just as much tied to the theme

• Scheduled event risk puts the Aussie Dollar and Pound in the crosshairs today

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

Some of the sting of last week's volatility surge has softened, but the gradual shift to greater trading activity looks to carry some permanence. Amongst the pairs most exposed to the tides of speculative sentiment in the FX market, EURUSD and the Euro crosses are far more sensitive - which marks the recent rebound for the currency with a consider level of risk. The benchmark for a systemic shift in conviction though in the FX market rests with the Yen crosses. These carry trades have little yield and a fading support from the BoJ's stimulus efforts. Meanwhile, the docket will fill out for certain currencies. The Aussie dollar faces the RBA decision today and the Pound's persistent retreat will heighten its sensitive to data like today's PMI statistics. We talk trading themes and short-term conditions in today's trading video.

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

Related Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. 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​
  5. 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.
  6. 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.
  7. 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 ...
  8. Forex

    Top U.S Forex News Sites

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

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    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.
  10. 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.
COMPANIES IN THIS ARTICLE
Trading Center