Trading Video: EURUSD and S&P 500 Open Up the New Year With Big Bear Moves
• Volatility posted another unexpectedly, holiday surge with a sharp S&P 500 correction bearing the pain
• Amid a broad Dollar rally, EURUSD dropped below 1.2000 for the first time since June 2010
• What will happen with these impressive market and volatility trends when liquidity returns?
Want to develop a more in-depth knowledge on the market and strategies? Check out the DailyFX Trading Guides we have produced on a range of topics.
Those expecting a quiet trading session to level off the long holiday weekend were caught off guard Friday. With a swell in volatility, a Dollar rally led EURUSD to a four-and-a-half year low below 1.2000 while the S&P 500 pitched into a convincing bearish reversal. This level of activity and the progress being made is atypical of the trading conditions we usually expect at this time of year. In turn, it is likely an indication of what kind of markets we will be dealing with in 2015: more volatile, more correlated on fundamental themes and more prone to risk aversion. Looking ahead to the first full week of the New Year, the docket fills out with US NFPs, key Eurozone data and a BoE rate decision among other releases. We look at the stage being set for the return of liquidity in the weekend Trading Video.
Sign up for John’s email distribution list, here.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.