Trading Video: A Sharp Eye on S&P 500 and Risk Trends Next Week

Talking Points:

• There is a dense economic docket this coming week with items that can stir important fundamental themes

• Top concern, however, resides with risk trends as benchmarks like the S&P 500 are deafeningly quiet

• Fundamentals and technicals look to roil the Dollar, Euro, Pound, Yen and US equities

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With the major currencies already under the influence of deeper fundamental currents, high level event risk this coming week can keep the volatility fires burning. However, one particular theme should be reviewed each time we return to the market: risk trends. We have already seen numerous changes in the structure of the broader financial system to suggest we are permanently turning from complacency and the 'status quo'. Yet, even after October's nasty tumble and given the disparity in conviction seen in FX and other asset classes; we find the S&P 500 - the traditional standard-bearer for sentiment - is back at record highs with certain volatility readings at a near-decade low. We review risk, the major themes for the FX market that are carrying forward and key event risk ahead in the weekend Trading Video.

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