Expect EURUSD Volatility but Not Necessarily a Clean Trend
• Monetary policy was the key theme this past session between a BoJ decision, Fed minutes and BoE minutes
• While EURUSD may be the lightening rod for volatility, other pairs likely offer better trade potential
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Updates from the Fed, BoJ and BoE fed Dollar, Yen and Pound volatility respectively this past session. Heading into Thursday's session, the market's focus on monetary policy will amplify the market impact of key Euro-area and US event risk. From the European docket, November PMI figures offer a timely growth update for a central bank vowing to expand its stimulus program until it ends deflation and revives growth. On the back of the FOMC minutes, October CPI will outshine a range of scheduled indicators. With this collective release, EURUSD is the most at-risk major pair for volatility. However, this dense round of event risk may prevent a clear response to the wave of data. Other pairs - like GBPUSD, EURGBP, USDJPY and others - may provide the better platform to position for meaningful updates. We discuss the high profile event risk, the underlying themes and its trade potential 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.