Video: Breakout Risk for EURUSD, GBPUSD and USDJPY
• The Thanksgiving holiday historically does curb volatility for the FX market the same as capital markets
• However, a shift in focus towards monetary policy rather than risk trends skews the probabilities
• We discuss the breakout potential for majors like EURUSD, GBPUSD and USDJPY on this theme Want to develop a more in-depth knowledge on the market and strategies?
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Holiday trading conditions typically render markets inert and disarm trade potential. However, the shift in focus for the FX market from 'risk trends' to the relative bearing for monetary policy may sustain - if not amplify - the potential for volatility. Whether or not we see breakouts or trend development from a specific currency or pair moving forward depends on the unit's focus on the monetary policy bent as well as the scheduled event risk that can spark the change in positions. We rank the exposure and catalysts among the Dollar, Euro, Pound and Yen in today's Strategy Video with an eye towards trading opportunity.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.