Market Dangerously Complacent as AUD/USD, GBP/USD Volatility Risk Rises
It seemed that the market's dodged a bullet last week when a wave of NFPs, FOMC and US GDP passed without leveraging a Taper-borne volatility surge. (New to Forex? Watch this video.) And yet, optimism in the market seems far from booming. The opening session of trading this week brought with it extreme levels of complacency - generating more suspicion than confidence. The markets abhor extremes, and excessive inactivity risks seeing a 'return to norm' with a natural spark in sentiment. With key event risk on hand like the RBA rate decision, Italian 2Q GDP reading and Bank of England inflation report; we could see isolated flare ups in volatility for certain pairs or a long overdue eruption in market-wide sentiment. We discuss the possibilities and trade consideration in today's video.
Find out what event risk can threaten the trade setups talked about in today's video with the DailyFX Economic Calendar.
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