Trading Video: FX Volatility Surge Puts Dollar and S&P 500 on Alert
• FX volatility levels swell - is it a precursor to a deeper shift in sentiment market-wide?
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Is the FX market offering a signal for the rest of the financial system? Volatility readings for the currency market have ballooned - and far further than just the EURUSD and GBPUSD which have been particularly active as of late. Historically, the FX market is the more stable asset class and is even more controlled with central banks pursuing policy that is in large part aimed at reducing swings in the exchange rates. What does this mean for our general trade approach? Will this increased sensitivity leverage upcoming event risk - particularly from the UK and New Zealand? What would the next jump in the volatility spread be? We discuss this and more 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.