Forex: Pound Soars, Aussie Tumbles, Yen Crosses Ready to Break
• The BoE Quarterly Inflation report proved a serious sterling moving even if it did reduce transparency
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This past session has seen incredible bursts of volatility in the FX market...if you know where to look. Key event risk - that taps into the more important fundamental trends of their host currencies - forced traders to react and reposition. The two most noteworthy movers were the British pound and Australian dollar. The closely-watched Quarterly Inflation report from the BoE and Australian employment data caught enough of the market offguard to generate substantial moves for both currencies. The question now is whether these initial thrusts are trendworthy. Meanwhile, pressure seems to be building once again behind a more elemental market driver - risk trends. With the S&P 500's rebound running out of steam and the yen crosses forming breakout patterns, we may see our next fundamental move come with added weight.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.