Trading Video: Officials Trigger Volatility for Euro, Yen and Dollar

Talking Points:

• Trends and volatility in the FX market is increasingly predicated on monetary policy threats and changes

• A warning that the Yen has dropped too rapidly, a PBoC rate cut and ECB Draghi comments stirred Friday

• While the Thanksgiving week may quiet capital markets, currencies will still be churning

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Central banks and other policy groups are increasingly responsible for FX-based volatility and trend development. This is just another evolution to what drives the markets, but this shift may also confer traders some benefit in the week ahead. If traditional 'risk' trends aren't needed to keep the currency market running, we will need to change our trading approach from what seasonality considerations would normal suggest for the 'Thanksgiving lull'. Through the end of this past week, ECB President Draghi drove the yen down with vows of more stimulus, the Aussie surged with a PBoC interest rate cut and the Yen rallied on an unexpected comment by Japan's Finance Minister. Trends founded on monetary policy disparities and volatility fed by data that shapes them will make for a more active trading week ahead. We discuss trading conditions, important technical setups and high-level fundamental themes in the weekend Trading Video.

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