Volatility

Forex trading volume is an important tool for identifying trends and reversals. Take a look at how you can use volume indicators and strategies to improve your forex trading.

In these turbulent times that the markets are navigating, forex is no exception to the rule. Volatility, which is the rate at which the price of an asset increases or decreases over a period of time, is one of the most exciting and risky features of the currency exchange market.

We talk a lot about how volatility creates opportunities for traders. But what happens when there’s only a little market movement to take advantage of? Find out what to trade when there’s low volatility and look into some of the low volatility trading strategies.

There are two tell-tale signs that an important event is looming; realised volatility has died a quiet death whilst implied volatility has sprung alive.

There are two tell-tale signs that an important event is looming; realised volatility has died a quiet death whilst implied volatility has sprung alive.

EUR/USD posted a false breakdown at the bottom trendline of the channel in late November near the 61.8% Fibonacci retracement level

With Silver prices continuing to coil, it remains touch and go as to which way it could break. But with volatility seemingly brewing around a pivotal area, when it breaks, it could be hard and fast.

After pausing briefly on this morning’s slightly softer-than-anticipated inflation data (see my colleague Fawad Razaqzada’s post, “Dollar extends but CPI miss not a game changer” for more), US stocks have resumed yesterday’s selling rout. As of writing, the Dow Jones Industrial Average is trading off by another 500+ points, with the S&P 500 falling by more than 2% as well.

As equity markets continued to rally sharply on Tuesday on the back of a strong start to corporate earnings season and decreased concerns over geopolitical risk, market fear as measured by the VIX volatility index continued to march lower.

The heavily anticipated minutes from the last FOMC meeting in late January, when interest rates were kept unchanged as expected, were released on Wednesday afternoon.

We’ve noticed some strange market reactions this week, on the one hand stocks are looking very shaky as some key support levels are tested and the Vix index is at its highest level for 6-months. However, on the other hand, emerging market currencies are holding up well vs. the USD, the South African rand is one of the top performers vs. the USD this week, and the US corporate high yield debt spread with Treasury yields remains remarkably stable at 3.5%. So what is going on?