Tuesday, 28 July 2015

Forex Market Volatility



- Forex volatility prices surge ahead of highly-anticipated US Federal Reserve Meeting- British Pound volatility near-guaranteed on pivotal week for GBP pairs- Jump in volatility prices leaves our focus on Breakout2 trading strategy

Forex volatility seems near-guaranteed on a pivotal week for the US Dollar. Our focus turns to high-volatility trading with a special focus on USD and GBP pairs.

Short-term volatility prices/expectations have surged to their highest since mid-January as traders predict important financial market moves on a highly-anticipated US Federal Reserve rate announcement. Recent shifts in global interest rate markets as well as the S&P 500 and broader equities make the next market moves especially significant; despite hitting record-highs in February, the S&P has now traded lower for three consecutive weeks and effective erased all year-to-date gains.

Whether or not equity markets can recover from the recent market shift may depend on the Fed’s next moves, and the overall uncertainty leaves us in favor of high-volatility trading strategies across highly-affected currency pairs.


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