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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Video: The Threat of Deeper Risk Aversion Tops 4Q Trading Themes

Video: The Threat of Deeper Risk Aversion Tops 4Q Trading Themes

John Kicklighter,

Talking Points:

• Seasonally, October is the most volume and volatility intense month - a dangerous mix for a 'risk'-prone market

• On balance through 2015, monetary policy tended to carry the most influence over the financial markets

• With the sharp drop in risk trends through these past few months, sentiment will likely be a key 4Q theme

Want to develop a more in-depth knowledge on the market and strategies? Check out the DailyFX Trading Guides we have produced on a range of topics.

Another swell of volatility has stalled before critical technical moves were made. Monday's broad selling pressure in risk-oriented assets pushed a number of benchmarks to the precipice; but calm this past session has left us balancing. Given the motivation for this week's abrupt start traces back to swoons in assets such as Emerging Markets, high yield and biotech shares; it seems financial headlines are still carrying more influence than sheer speculative positioning. However, accounts of the wave of capital outflows from previous favorite assets and ETFs will keep sentiment off balance and the risk of a true breakdown dangerously close. As we await the verdict on sentiment trends, the Fed's rate timing conversation will be revived with a number of key speeches scheduled (including a distinctly risk-sensitive discussion on liquidity with New York Fed President Dudley). We discuss the fundamentals, technicals and market opportunities in today's Trading 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.