Forex Trading Video: Watch EURUSD for Risk, GBPUSD and NZDUSD For Rates
Talking Points:
• Despite a swell of activity on the ECB and NFPs, we saw volatility levels end the week at extreme lows
• Questionable risk appetite may make EURUSD the most risk-exposed major in the FX market
• Meanwhile, extended rate expectations make GBP and NZD susceptible to data and an RBNZ decision
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There is no escaping the growing unease as traditional volatility readings tumble to multi-year and even record lows. And, for FX traders, the most exposed currency pair may be EURUSD. This past week's ECB stimulus push has both stoked investors' push for return and exacerbated an already prominent dependency for the Euro on status quo risk trends. This pair is a focal point for the two key drivers moving forward. Sentiment trends are building to be a greater and greater threat by the week, but that is not a trade to implement until systemic tides have turned. In the meantime, interest rate expectations have been stirred for the Euro and US Dollar this past week, and event risk will do the same for the Pound and Kiwi ahead. We discuss this and more in the weekend Trading Video.
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