Market Volatility Forecast: What Assets Will Move in Q1? | Podcast
Talking points on this podcast:
- What’s in store for market volatility in Q1 2020?
- Capital market theory and its importance for retail traders
- How is trading the German Dax different from other indices?
This time on Trading Global Markets Decoded, our host Martin Essex is joined by DailyFX and IG analyst Salah-Eddine Bouhmidi. Don’t miss this discussion on the opportunities volatility might present in Q1 2020, Capital Market Theory, and how to benefit from trading the Dax 30.
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Market volatility forecast
A key theme of the podcast is the subject of volatility in 2020. How does Salah-Eddine see it play out? “It depends on a lot of fundamental issues like the trade war. I think we will stay in this range of volatility we have right now, and when the US election gets closer, we could see higher volatility. Principally in EUR/USD, other USD pairs and Wall Street stocks? “Right, and gold. We have seen the safe havens grow [due to] the trade war, which has brought uncertainty into the market, and also the [dovish] monetary policy of the big central banks.
“For 2020 I’m optimistic the gold price can still rally. We are technically still bullish, so if the monetary policy doesn’t significantly change and the trade wars don’t change, I think gold is still in a good position.”
Implied volatility tool
Salah-Eddine also mentions his Bouhmidi Bands tool – what is it and how can it help traders? “Like Bollinger Bands ®, the Bouhmidi Bands are based on volatility, but the slight difference is that Bouhmidi Bands are not based on historical but implied volatility,” he explains.
“You can use Bouhmidi Bands for a variety of markets based on their respective volatility index, for example S&P 500 and the VIX. Bouhmidi Bands can help you filter invisible support and resistance levels. It’s a good tool that can help avoid wrong stop loss placements.”
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.