We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
Oil - US Crude
More View more
Real Time News
  • Hello there, traders! Today’s webinar on how politics will be impacting markets in the week ahead will be rescheduled.
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX! - https://t.co/RgnsklZ2Gl
  • #BITCOIN Daily Pivot Points: S3: 7776.19 S2: 8156.58 S1: 8309.92 R1: 8690.31 R2: 8917.36 R3: 9297.75 https://www.dailyfx.com/pivot-points?ref=SubNav?CHID=QPID=917720
  • Geopolitical developments send #oil prices soaring or falling. Get your market update from @MartinSEssex here:https://t.co/XVXLyG8vjq #OOTT https://t.co/wbf3Lwe5Qt
  • Join analyst @DavidJSong at 5:30 PM ET/10:30 PM GMT for your weekly update on key news trading events. Register here: https://t.co/gBlrRpCc55 https://t.co/2B8CdSgkuq
  • The Aussie sell-off halted at key lateral support this week and puts the focus on a break of this key range. Here are the levels that matter on the AUD/USD weekly chart. Get your $AUDUSD technical analysis from @MBForex here: https://t.co/rU4u1tMlmz https://t.co/QbyxUrDq1a
  • The $JPY market faces a clear disconnect between domestic economic data and monetary policy. What if that were to change? Get your market update from @DavidCottleFX here:https://t.co/4Gr8tLaHvj https://t.co/0eXMv5CTnd
  • #Forex Forecast via @DailyFX: US Dollar Technical Outlook on $DXY, $AUDUSD, $USDCAD, $USDJPY & $EURUSD Full Analysis ⬇️ https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/11/17/usd-price-us-dollar-chart-forecast-dxy-audusd-usdcad-usdjpy-eurusd.html
  • Further escalation in Hong Kong will likely bode poorly for risk appetite https://t.co/0NjUd3ahBu
  • How should you trade around event risks and what steps can you take to improve your trading psychology? Find out from @JoelKruger, a trading consultant and mentor. Only on Global Markets Decoded. Missed the episode? Read up here:https://t.co/JWIGJk4vKa https://t.co/WB39x4GP99
Currency Volatility: GBP Traders Eye BOE and Brexit Vote, Fed to Drive USD

Currency Volatility: GBP Traders Eye BOE and Brexit Vote, Fed to Drive USD

2019-03-15 20:34:00
Rich Dvorak, Junior Analyst


  • 1-week implied volatility has recently faded across major currency pairs but could easily tick higher considering event risk on deck
  • Currency price action could get a jolt next week with upcoming interest rate decisions from the Fed and other central banks in addition to a third meaningful vote for Brexit and New Zealand GDP
  • Check out the Top 10 Most Volatile Currency Pairs and How to Trade Them

Currency traders largely focused on moves in the British Pound last week as the latest Brexit drama dominated headlines while the US Dollar also caught attention after a weak inflation reading. But what’s likely to generate volatility in the currency markets next week?


Currency Market Volatility For USD, EUR, GBP, AUD, NZD, CAD, CHFEURUSD, GBPUSD, USDJPY, USDCHF, USDCAD, AUDUSD, NZDUSD Forex Price Chart Volatility

GBPUSD implied volatility on the 1-week options contract remains elevated with Brexit dragging on into next week. After PM Theresa May suffered another defeat on her Withdrawal Agreement last Tuesday which provoked the House of Commons on Thursday to revoke Article 50 and extend the March 29 Brexit deadline.

British Parliament will now face its third meaningful vote early next week as the UK government clings to hope of passing the Prime Minister’s Brexit deal. Although MPs just voted to delay Brexit, pushing the deadline back is still contingent on approval from all other 27 members of the European Union. A decision is expected at next week’s EU summit, but several outstanding uncertainties cloud where things go from here. Thus, it is no surprise GBPUSD 1-week implied volatility remains extremely elevated.

Want to learn more about the GBP? Read up on What Every Trader Needs to Know about the British Pound here!

Furthermore, the Bank of England is expected to provide markets with an update on its monetary policy. Although BOE’s Mark Carney is expected to remain sidelined by Brexit, language from the central banker could provide guidance for their next move. Carney recently stated that markets are underpricing the probability of future rate hikes.


Forex Economic Calendar for USD, JPY, GBP, CAD, AUD, NZD EUR Currency Pairs

Visit the DailyFX Economic Calendar for a comprehensive list of upcoming economic events and data releases affecting the global markets.

Likewise, key USD pairs could gain extra attention in response to the Federal Reserve’s FOMC meeting next week. Although the Fed is anticipated to keep its policy interest rate on hold too, Chairman Powell’s relative dovishness will likely underpin where the greenback moves from here. With the Swiss National Bank and Norges Bank also scheduled to announce their latest decisions on interest rates, the Swiss Franc and Norwegian Krone could also see extra volatility.

Elsewhere in the markets, traders will likely take notice to New Zealand’s fourth quarter GDP report which could materially impact the NZD. Employment data out of Australia should also be watched closely in addition to inflation data out of the UK, Japan and Canada.


- Written by Rich Dvorak, Junior Analyst for DailyFX

- Follow @RichDvorakFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.


News & Analysis at your fingertips.