• Activity levels have plunged to even further extreme with EURUSD carving a range of less than 30 pips
• History shows such extremes do not last and the NFP release offers another opportunity to ignite activity
• The Yen crosses offer distinct risk plays, but EURUSD and GBPUSD hold deeper fundamental potential
Are the markets so robust that they can maintain this level of complacency and extremely low volatility? Not for long. Risk-sensitive benchmarks like the S&P 500 and Yen crosses have pushed themselves even further into technical patterns that risk heavy repositioning on a breakout. Meanwhile, even core pairs have been pushed to extremes outside of the traditional 'risk' theme. EURUSD has accumulated heavy capital inflow and now faces the ECB's ire, while the GBPUSD has positioned itself for an exceptional interest rate forecast. On a substantial surprise, the NFPs figure can answer both imbalances: parched sentiment trends and a rebalanced US rate forecast. We look at trading over the next 24 hours and beyond in today's Trading Video.
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