Talking Points:

• Low volatility and weak fundamental influence dampen trend development and defang major breakouts

EURUSD may be one of the best positioned majors as ECB policy offers an active compliment to dormant risk

• The most prominent volatility risk/opportunity is the British pound as the BoE talks policy above 1.7000

Watch the Strategy Video on the timing and conditions for a return in volatility.

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Great technical setups and high profile fundamental developments defer to general market conditions. Low volatility and low participation environment are promoting range trading and short-term breakout trading rather than large trend or wide swing trades. Under these circumstances, it is just as important to choose the proper strategy as it is to select the best individual setup. One pairs that stands out for its medium-term potential is EURUSD. Whether volatility pick up or the status quo focuses on yield forecasts, there are strong bearish hooks here. If we want volatility, the British pound is the top of the list with a possible monetary policy change ahead. And, what about these incredibly tight Yen cross ranges? We discuss all of this in the weekend Trading Video.

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