Trading Video: Gauging the Dollar's Reversal Risk and S&P 500's Lag
• USDollar has pulled back to its prominent channel support, but do the majors show the same imminent risk?
• Equities - a risk asset - have extended trends in Europe and Asia but the S&P 500 is notably hesitant
• Event risk ahead is less targeted than this past session's Chinese GDP and BoC decision
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There were some surprises in volatility and market reaction this past session, but is there enough to the moves and on the docket ahead to carry trends? In the scale of event risk this past session, the 1Q Chinese GDP reading carried the most severe profile amongst participants. That said, the slowest pace of expansion for the world's second largest economy in six years did little to unnerve global capital markets (through 'risk'), the Australian Dollar or even the Yuan. Alternatively, a hold on monetary policy by the Bank of Canada spurred a sharp rally for Canadian Dollar pairs and even a clean head-and-shoulders break for USDCAD. Are these moves sustainable? What will the key event risk ahead do to these unexpected moves and for the big picture trends? We discuss this 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.