News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/eaA8ZI6DVu
  • Chinese property development company Sinic Holdings (2103) - Down 87%...@DailyFXTeam #contagion #Evergrande https://t.co/h5mfwqGASZ
  • 🇪🇸 Balance of Trade (JUL) Actual: €-1.60B Previous: €-0.98B https://www.dailyfx.com/economic-calendar#2021-09-20
  • Heads Up:🇪🇸 Balance of Trade (JUL) due at 08:00 GMT (15min) Previous: €-0.98B https://www.dailyfx.com/economic-calendar#2021-09-20
  • Fitch on China Property Developers - View will turn negative if sales in H2 21 fall below that achieved in H2 19 and/or if sharp fall follows through to H1 22 - Government policies in sector remain tight and show no sign of imminent loosening
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0uF2Ct https://t.co/B0Y3XJhkRS
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/1xhewkdV21
  • (USD Weekly Tech) US Dollar Dominant Uptrend Back In Focus: EUR/USD, USD/JPY, NZD/USD, USD/CHF https://www.dailyfx.com/forex/technical/article/special_report/2021/09/20/US-Dollar-Dominant-Uptrend-Back-In-Focus-EURUSD-USDJPY-NZDUSD-USDCHF.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/IpwzBGCi7P
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/qv8keXFzHZ
  • Join @IlyaSpivak at 22:00 EST/2:00 GMT for his cross-market weekly outlook webinar. Register here: https://t.co/MKGHc9ae64 https://t.co/JMlT0Wn3DK
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

Rich Dvorak, Analyst

FOREX MARKET IMPLIED VOLATILITY - TALKING POINTS

  • 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?

FOREX MARKET IMPLIED VOLATILITIES AND TRADING RANGES

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

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.

DISCLOSURES