Trading Video: Is the S&P 500 Rebound, VIX Retreat a Trend or Interlude

Talking Points:

• Equities climbed while volatility measures dropped to start the week on a tentative 'risk on' footing

• A high-profile release, the Chinese 3Q GDP figure Tuesday morning failed to spur fear or exuberance

• Market-derived risk remains the greatest potential for volatility, but event risk can stir certain pairs

See the DailyFX Analysts' forecasts for the Dollar, Euro, Pound and Gold through the 4Q on our DailyFX Trading Guides page.

Have the dark clouds passed for the financial system? Extending the recovery period through the second half of last week, US equities rallied and volatility indexes dropped Monday. This calm was further put to the test with the release of 3Q Chinese GDP this morning - an important release for the global markets with global growth trends shadowed in doubt. Risk trends are unlikely to have settled, but in the meantime, other fundamental themes and technical cues will take the reins. Will the Dollar further suffer a downgraded rate forecast? Is news of ECB's stimulus activation the cue for the next leg of the Euro's tumble? Has GBPUSD's trend break shifted the balance of power and momentum? We discuss this and more in today's Trading Video.

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