Positioning for volatility

4 November, 2015

This week is turning out to be something of a waiting game for FX markets, given the swathe of UK events scheduled for Thursday and Friday’s payrolls data in the US. Ahead of that, we’ve seen the latest PMI data from China come in slightly better than expected overnight, with this helping a better tone to Asian stocks and also underpinning the better tone to the Aussie gained in the wake of the interest rate decision yesterday. AUDUSD is challenging the 0.7220 level, but struggling to hold above it for the time being. Sterling will be focused on the services PMI data today, which has been falling for the prior four months and given the extent of the turn-around seen in the manufacturing data earlier in the week, the market expects 54.5 (from 53.3).

The point in the UK is the long time until which a hike is fully priced in, which is currently fully priced for October of next year. It’s this which is most vulnerable tomorrow should the Inflation Report come out with a more hawkish tint, which would be supportive for sterling. EURGBP has been pretty relentless recently in its move lower, which could be enhanced in this scenario, pushing the cross back towards the 0.70 level. We also see trade balance and ISM data in the US today, with the latter seen steady on the final services measure. Overall, the market is still pricing nearly 50:50 chance of a Fed hike mid-December, so we’re going to see the dollar become increasingly sensitive to data releases as this meeting draws ever nearer.


Source link  
Oil hits 3-month lows

On Monday, the dynamics of oil was in the spotlight on a combination of negative factors by both the potential demand and the supply part. Asian markets...

Fed Monetary Policy Report to be released

This report is release twice a year and provides an insight into the conduct of monetary policy and economic developments and prospects for the future for the...

The Pound continues to weaken

Cable (GBPUSD) took a hit yesterday as Boris Johnson resigned from the Cabinet following the earlier decision by David Davis to part ways...


The latest Brexit proposals

The UK's Brexit Secretary David Davis has resigned along with two junior ministers, Steve Baker and Suella Braverman, over PM May's latest softer Brexit proposals...

Some ECB members want earlier rate hike

The markets remain subdued after yesterday's 4th of July celebrations in the US. Despite this Oil headlines are dominating the markets once again. US President Trump...

Gold has played out as a double top

The gold chart has played out as a double top with a break under 1300.00 signalling a move down to 1240.00 from its highs at 1365.00. We have now hit the 1240.00...


Gold chart has played out as a double top

The gold chart has played out as a double top with a break under 1300.00 signalling a move down to 1240.00 from its highs at 1365.00. We have now reached...

President Xi warns of Full Scale Trade War

Risk on sentiment returned briefly yesterday as markets retraced some of Monday’s selloff but sentiment in Asia has declined overnight. The PBOC cut...

USD extend losses in risk adverse markets

Stock markets fell hard yesterday as trade tensions deepened and the consequences of such action has investors worried. US Company Harley Davidson...


In the past 24 hours Bitcoin has lost -1.02% and reached $7351.23. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.3727% and is now at $1.1646. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 6.44% and is now at $462.22. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets90%
2FXTMFXTM88%
3HYCMHYCM86%
4FIBO GroupFIBO Group79%
5FxProFxPro78%
6FXCMFXCM73%
7AvaTradeAvaTrade69%
8HotForexHotForex68%
9XMXM68%
10Alfa-ForexAlfa-Forex66%
  


Share: