Trading Video: Liquidity Drain Vs NFPs and ECB for EURUSD Next Week
• There is high level event risk scheduled for release next week including the NFPs and ECB decision
• Market conditions, however, may prove an issue with the US market holiday further draining volatility
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With US NFPs and an ECB rate decision scheduled for the same day, it would seem EURUSD is guaranteed a breakout and trend development next week. Yet, even with capable fundamentals and convincing technicals, market conditions are still a critical ingredient to market development. That will prove the deciding factor for how we approach the market over the immediate future. A US holiday liquidity drain will exacerbate an already anemic volatility backdrop. How should we approach the markets this week - and for that matter the week after when volatility historically sees a significant rebound? We discuss that in the weekend Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.