Which Reflects Risk - S&P 500 at 2000 or EURUSD Below 1.3200?

By DailyFx | Updated August 26, 2014 AAA

DailyFX.com -

Talking Points:

• The S&P 500 finally closed above 2,000, but it did so on the weakest non-holiday volume in over a decade

• Traders are in charge rather than investors, and the recent swell in risk premium has been drained

• EURUSD continues its drop to 12-month lows with the highest average volume in a year

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

The S&P 500 and EURUSD are moving in distinctly different directions, and their fundamental currents are more closely aligned than many think. Both benchmarks run under the counsel of speculative appetite. So then, why is equity benchmark at record high and the most liquid currency at a 12-month low? Anemic volume on the former and motivation through a secondary factor for the latter once again highlight conviction - more specifically, its lack - is the deciding factor. We track the markets as risk trends evolve while keeping tabs on yield expectations for FX development in today's Trading Video.

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

You May Also Like

Related Forex Analysis
  1. Weekly Trading Forecast: Volatility Keeps Boiling in the FX Market
    Forex News

    Weekly Trading Forecast: Volatility Keeps Boiling in the FX Market

  2. Dollar May Not Have a Quiet Thanksgiving...
    Forex News

    Dollar May Not Have a Quiet Thanksgiving...

  3. Gold Rallies on PBOC, ECB Surprise Easing -1207 Key Resistance
    Forex News

    Gold Rallies on PBOC, ECB Surprise Easing -1207 Key Resistance

  4. AUD To Look Past Local Data Yet Remains At Risk On Elevated Volatility
    Forex News

    AUD To Look Past Local Data Yet Remains At Risk On Elevated Volatility

  5. GBP/USD to Break Out on Less-Dovish BoE, Weak U.S. 3Q GDP
    Forex News

    GBP/USD to Break Out on Less-Dovish BoE, Weak U.S. 3Q GDP

Trading Center