Trading Video: Dollar Rally Finds a New Victim in GBPUSD Collapse
• Volatility continues to build in the FX market, and the Pound has stepped up to take the mantle this week
• A large, bearish gap for GBPUSD offers another strong lever for dollar bulls and the market's volatility
• Top event risk in the upcoming session falls to the Pound once again on GDP estimate, trade, and more
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A dramatic start to the week from the British Pound has kept the fires of volatility in the FX market stoked. While expected volatility readings surged for GBPUSD, the swell in activity and uncertainty is proving more universal than many appreciate. A more robust backdrop for volatility sets the stage for larger swings and sustained trend development within the currency ranks. Yet, the deeper the sentiment shift goes, the more systemic it will become for the broader financial system. And, with a global change in sentiment, the trends gouge deeper and faster. Meanwhile, the Pound's recent stir to life will remain a topic of conversation moving forward with key data due alongside ongoing Euro and Dollar trends. We discuss all of this 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.