Skip to Content
News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
Risk On Uncertain Ground Heading Into Weekend, But Volatility Restrained

Risk On Uncertain Ground Heading Into Weekend, But Volatility Restrained

John Kicklighter, Chief Strategist

Talking Points:

• A drop from US equities through the end of week highlighted a broad drop in 'risk' sensitive assets

• Though there were a wide array of assets that felt the pinch, volatility was surprisingly restrained

• Complacency and resistance to turning a 6-year trend are very strong, can even high event risk trigger it?

Sign up for a free trial of DailyFX-Plus to have access to Trading Q&A's, educational webinars, updated speculative positioning measures, trading signals and much more!

We have kept tabs on various measures that have signaled an underlying - but slow - shift away from 'risk'. There have been few bouts of genuine fear to spark a run to the exits over the past three years. However, through the end of this past week, a sense of friction was agitating the carefully crafted sense of complacency. While still far from panicked selling, the move from riskier assets spread to a broader range of markets and measures that are sensitive to a change in sentiment. Friday's drop for the S&P 500, emerging markets, carry trade and other disparate assets intensified the mere rumblings earlier in the week. Will this unease carry through to next week? Will key event risk such as the FOMC rate decision and 2Q GDP figures ignite an overdue financial deleveraging? Why have volatility measures been slow to conform to this move? We consider these questions in this weekend 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