Trading Video: Dollar Surges as S&P 500 Skulks
• EURUSD was a notable exception to the FX volatility as the ECB rate decision inches closer
• Outside of currencies, the S&P 500 has yet to see activity revived - but that is likely to change soon
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Liquidity is returning after the US holiday lull, but it is not yet clear whether we are making a full seasonal shift from the Summer Doldrums - much less a systemic recovery from near-record low volatility. In the first wave of returning traders though, the FX market has definitely reaped the rewards in the form of some large moves amongst the majors. In particular GBPUSD and USDJPY both experienced strong dollar-supportive moves that develop existing trends. Yet, progress quickly comes under doubt when we consider the fundamental elements to the move. Meanwhile, EURUSD - one of the most proactive majors - passed the day virtually unmoved. We evaluate the big FX moves as well as the building pressure of S&P 500 congestion in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.