We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Oil - US Crude
Mixed
Bitcoin
Bullish
More View more
Breaking news

British Pound surges after UK exit poll shows Conservatives expected to win 368 seats out of 650

Real Time News
  • Reaction from EU - Brussels expect trade talks will start in March. - However, they do not believe an ambitious trade deal is possible to be negotiated and ratified by Dec 2020 - Only possibility is quick FTA on EU terms - BBC's Adler $GBP
  • RT @EdwardLawrence: The source says a signing ceremony will not happen with President Xi. There will be a rollout of the agreement by the W…
  • RT @EdwardLawrence: The source says Dec 15th tariffs do not go forward. There will be a small reduction in tariffs on some Chinese goods as…
  • RT @EdwardLawrence: A trade source tells me this is a historic day. US & China agree to a Phase One deal on Paper. The source says Chinese…
  • 🇯🇵 JPY Tankan Large Manufacturing Index (4Q), Actual: 0 Expected: 3 Previous: 5 https://www.dailyfx.com/economic-calendar#2019-12-12
  • 🇯🇵 JPY Tankan Large Manufacturers Outlook (4Q), Actual: 0 Expected: 3 Previous: 2 https://www.dailyfx.com/economic-calendar#2019-12-12
  • 🇯🇵 JPY Tankan Small Non-Manufacturing Outlook (4Q), Actual: 1 Expected: 3 Previous: 1 https://www.dailyfx.com/economic-calendar#2019-12-12
  • 🇯🇵 JPY Tankan Large All Industry Capex (4Q), Actual: 6.8% Expected: 6.0% Previous: 6.6% https://www.dailyfx.com/economic-calendar#2019-12-12
  • 🇯🇵 JPY Tankan Large Non-Manufacturing Index (4Q), Actual: 20 Expected: 16 Previous: 21 https://www.dailyfx.com/economic-calendar#2019-12-12
  • Tories take Blyth Valley; Labour held the seat since 1950 (*corrected) If this heartland seat is a bellwether...tough night ahead for Labour. #Brexit #UKElection #UKelection2019
Strategy Video: Will Yen Cross and SPX Traders Jump on Volatility Swell?

Strategy Video: Will Yen Cross and SPX Traders Jump on Volatility Swell?

2014-07-17 19:24:00
John Kicklighter, Chief Currency Strategist
Share:

Talking Points:

  • The tragedy of a downed flight at Ukraine's border has raised geopolitical tensions and market fear
  • Short-term volatility swells are a common sight in 2014 and the market has frequently taken advantage
  • Whether or not traders 'buy the dip' or 'short vol' depends on confidence in status quo and returns

Market conditions change, and our strategy should reflect those changes. We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts.

A downed plane on the Ukraine-Russia border has escalated geopolitical tensions and sent a ripple of fear through the financial system. With this tragedy thrusting a global point of tension back into the spotlight, short-term volatility measures have swelled in a familiar pattern for 2014. We have seen this jump in volatility and pullback in 'risk' sensitive assets plenty of times before. And, consistently, it has encouraged short-term traders to jump in and squeeze the premium added to capital markets. But, this instance looks different. Not only are we rising from extreme/record lows on activity measures, but the increase itself has so far been restrained. Furthermore, the return potential for the adjustment is smaller than usual. What does this mean for the S&P 500, Yen crosses and broader financial markets? We discuss that in today's Strategy 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.

DISCLOSURES

News & Analysis at your fingertips.