Video: Yen Crosses Surge and GBPUSD Ready for Volatility
• Volatility and risk trends leveled out this past session to be replaced by region-specific event risk
• Yen crosses were once again top movers as market speculation of an election and tax hike delay circulated
• Ahead, Pound traders are preparing for a clear update on the BoE's rate forecasts
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Market-wide sentiment swings have settled, but that hasn't curbed FX volatility. In the absence of a unified catalyst, we are finding localized fundamental developments that are generating heavy trading conditions. This past session, the Yen crosses were the most active amongst the majors. A troubled economic outlook and doubt over the effectiveness of stimulus measures has led to speculation/fear that an election could be around the corner and/or a delay in the second sales tax hike. This theme certainly isn't played out. Meanwhile, the most potential-packed liquid currency moving forward is the Pound. A key event release will tap a Sterling nerve with volatility and trend high-probability outcomes. We look at what is driving the FX market 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.