Trading Video: Volatility Without Clear Direction for the Dollar
• The Fed has amplified FX volatility but it has also upset the Dollar's clear trend
• Where the Greenback is flirting with correction, the S&P 500 (risk) seems embolden to run to new highs
• Top event risk in the week ahead include US and UK inflation, Greece discussions, PMIs and Fedspeak
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We will head into the new trading week uncertain of established trends and bedeviled by volatility. Rather than settling expectations, the FOMC rate meeting this past week has contributed to the pull between traditional fundamentals and speculative views. The Dollar suffered an exceptionally volatile second half of the past week, and the activity has contributed little to a productive trend. Meanwhile, risk trends seem to be refreshed with the S&P 500 closing in on a record and the VIX dropping even though the US central bank is closer to easing back on its extracurricular support of the financial system. Dollar and risk trends will be top concerns in the week ahead, along with high level event risk. We discuss whats on the docket for traders next week in this weekend Trading Video.
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