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
Mixed
USD/JPY
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
Gold
Bearish
Oil - US Crude
Mixed
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
Bitcoin
Bullish
More View more
Real Time News
  • RT @carlquintanilla: Blame the Fed. Blame tariffs. Blame GM. Blame Boeing. But US industrial production has fallen from 5.4% growth in Sept…
  • 🇺🇸 USD DOE U.S. Crude Oil Inventories (JAN 17), Actual: -405k Expected: N/A Previous: -2549k https://www.dailyfx.com/economic-calendar#2020-01-23
  • RT @QuickTake: JUST IN: The U.S. State Department says to reconsider travel to China, raises its advisory for the country to level 3 amid u…
  • RT @EconguyRosie: Today's decline in the Conference Board LEI, the downward revisions and the negative YoY trend leaves the outlook with tw…
  • 👀 https://t.co/h50XsheVmy
  • $RUT $RTY $IWM | Russell 2000 off its Jan 17 peak by roughly 2.25% #Stocks #StockMarket #Trading #TechnicalAnalysis https://t.co/05gcfNQj40
  • Forex Update: As of 15:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.47% 🇦🇺AUD: 0.07% 🇳🇿NZD: -0.04% 🇨🇭CHF: -0.14% 🇬🇧GBP: -0.27% 🇪🇺EUR: -0.42% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/JAI7Vvb2et
  • Indices Update: As of 15:00, these are your best and worst performers based on the London trading schedule: US 500: -0.26% Wall Street: -0.37% France 40: -0.47% Germany 30: -0.66% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/W0Akx48sao
  • Heads Up:🇺🇸 USD DOE U.S. Crude Oil Inventories (JAN 17) due at 16:00 GMT (15min), Actual: N/A Expected: N/A Previous: -2549k https://www.dailyfx.com/economic-calendar#2020-01-23
  • from wedge resistance to wedge support $EURJPY https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2020/01/18/Euro-Weekly-Forecast-EURUSD-Range-EURJPY-Wedge-Ahead-of-ECB.html https://t.co/bAGbxFR0M4
Currency Volatility: EURUSD, AUDUSD, USDTRY Weekly Outlook

Currency Volatility: EURUSD, AUDUSD, USDTRY Weekly Outlook

2019-06-11 11:05:00
Justin McQueen, Analyst
Share:

Currency VolatilityEURUSD, AUDUSD, USDTRY Talking Points

  • EURUSD Risk Reversals Highest Since Beginning of 2018
  • AUD Vols Firmer Ahead of Key Jobs Report

Top 10 most volatile currency pairs and how to trade them

1D and 1W Implied Volatility

Currency Volatility: EURUSD, AUDUSD, USDTRY Weekly Outlook

Source: Thomson Reuters, DailyFX

Currency Volatility: EURUSD, AUDUSD, USDTRY Weekly Outlook

Source: Thomson Reuters, DailyFX

FX Volatility Muted

Despite the raft of key US data releases in the form of US CPI, Retail sales and U. of Michigan Sentiment figures, implied vols across the G10 FX complex are relatively muted. That said, implied vols in the antipodeans are slightly firmer with AUD traders placing close attention to the latest jobs report, in which another rise in the unemployment rate could support the case of another RBA rate cut in the near-term.

VIX Spike Needed to Spur Currency Volatility

EURUSD: Softening US data and rising prospects of an imminent rate cut from the Federal Reserve has seen option traders become the most bullish on the Euro since the beginning of 2018 with EURUSD reclaiming 1.13. Risk reversals have moved further into positive territory suggesting that demand for Euro calls is higher than puts. However, given that implied vols in the Euro are heading lower, this implies that any gains would most likely be gradual as opposed to a sharp rally. Alongside this, sizeable vanilla options around 1.1300-1.1360 could see price action somewhat muted in the absence of a fresh fundamental catalyst.

Currency Volatility: EURUSD, AUDUSD, USDTRY Weekly Outlook

USDTRY: Eyes will be on the upcoming Turkish Central Bank rate decision, where the central bank is expected to maintain interest rates at current levels as authorities continue to fight steep inflation. While inflation on a yearly basis has dropped from 25% to 18.7%, the CBRT is expected to maintain its tightening bias in order to keep inflation from spiking again. Consequently, while implied volatility in the Turkish Lira has eased alongside buyers of topside protection.

Currency Volatility: EURUSD, AUDUSD, USDTRY Weekly Outlook

For a more in-depth analysis on FX, check out the Q2 FX Forecast

--- Written by Justin McQueen, Market Analyst

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

Follow Justin on Twitter @JMcQueenFX

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

DISCLOSURES

News & Analysis at your fingertips.