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
EUR/USD
Bearish
GBP/USD
Bearish
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
USD/JPY
Mixed
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • Your psychology has a significant impact on the decisions you make, particularly if you are new to trading. How can you avoid your emotions from turning you into a #FOMO trader? Find out: https://t.co/FC7CHpk9vA #FOMOintrading https://t.co/WSDr3JkpAG
  • $AUDUSD: Short-term support could lead-in to a quick bounce up to resistance as taken from another prior support level, plotted around the .6830 level on the chart. Get your market update from @JStanleyFX here: https://t.co/tUoe1Roo5t https://t.co/omaDxGNhZU
  • Central bank independence has several advantages. Find out what they are in detail with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/cQQmuH8biQ
  • The US Dollar remains in consolidation mode against the Philippine Peso and Indian Rupee. Will the Singapore Dollar weaken as $USDSGD rising support holds ahead? Find out from @ddubrovskyFX here: https://t.co/HZ8Loqj3Ey https://t.co/6PCFkdj3ka
  • Follow @DailyFXedu for your regular #webinar updates with @DailyFX analysts and catch up on the webinars you missed. https://t.co/Da10QUg9r1
  • Greed has proven to be a hindrance more than assistance for traders. How does greed lead to #FOMOintrading? Find out from @RichardSnowFX here: https://t.co/aT8TZjlFqP https://t.co/Le8Qx6OOwV
  • $GBPUSD at the moment break-even straddles = 152pips meaning that for option traders to realize gains, the spot price must see a move greater than 152pips. Get your market update from @JMcQueenFX here: https://t.co/odj2lLRrGf https://t.co/RXCBwHGluG
  • $EURGBP has fallen over 6% since August and is now rapidly approaching a critical support level not reached since May. Will a break below accelerate the aggressive selloff? Find out from @ZabelinDimitri here: https://t.co/CBM8Fg7vM0 https://t.co/0yDnEpzQqR
  • The #Euro is struggling for direction against the US Dollar but the near-term downtrend guiding it lower since late June remains firmly intact. Where is $EURUSD heading? Get your technical analysis from @IlyaSpivak here: https://t.co/us6AINmuoe https://t.co/J4hQtyprYf
  • $DXY & $SPX500 hold steady after #FED rate cut. Get your update from @JohnKicklighter here: https://t.co/vqXlKCMDYA
GBP/USD Volatility Drops Sharply, USD/JPY Rises on BoJ Sources - US Market Open

GBP/USD Volatility Drops Sharply, USD/JPY Rises on BoJ Sources - US Market Open

2019-09-10 13:30:00
Justin McQueen, Analyst
Share:

MARKET DEVELOPMENT –GBP/USD Volatility Drops Sharply, USD/JPY Rises on BoJ Sources

DailyFX 2019 FX Trading Forecasts

GBP: The Pound has edged up 0.2% and continues to hover around its best level in over a month as imminent Brexit risks have been diminished. That said, with parliament suspended and Boris Johnson’s calls for a snap-election rejected, GBP implied volatility has dropped with both the 1D and 1W tenors dropping 2.9 and 1.4vols respectively. Elsewhere, the ONS showed that the labour market remains tight with the unemployment rate ticking lower, while wages pushed higher. As such, GBP/USD downside has been somewhat limited thus far.

JPY: Japanese Yen weakened on the back of source reports that BoJ policymakers could be open to a debate on further monetary easing, which would entail cutting rates deeper into negative territory. Consequently, this pushed USD/JPY to session highs, before gains had been capped yet again at the 107.50 handle.

SEK / NOK: The Scandies are notably weaker with the SEK dropping on the back of lower than expected inflation data (CPIF 1.3% vs. Exp. 1.5%), in turn, this raises questions as to whether the Riksbank can continue to signal that rates may rise at the backend of the year to Q1 2020. Elsewhere, while softer inflation data had also taken the shine away from the Norweigan Krona, the Norges Bank still remain set to raise interest rates in September with the Regional Network Survey highlighting that growth remained solid throughout the summer.

GBP/USD Volatility Drops Sharply, USD/JPY Rises on BoJ Sources - US Market Open

Source: DailyFX

WHAT’S DRIVING MARKETS TODAY

  1. EURGBP Price Outlook Tracks ECB Monetary Policy and Brexit News” by Nick Cawley, Market Analyst
  2. Gold Price and Silver Outlook: Will First Levels of Support Hold?” by Paul Robinson, Currency Strategist
  3. Crude Oil Price Analysis: Oil Boosted by New Saudi Energy Minister, Eyes on OPEC report” by Justin McQueen, Market Analyst
  4. Using FX To Effectively Trade Global Market Themes at IG” by Tyler Yell, CMT , Forex Trading Instructor

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

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

DISCLOSURES

News & Analysis at your fingertips.