US Dollar volatility trades near its lowest levels since the onset of the financial crisis in 2008; we favor further USD losses against the Australian Dollar and other forex counterparts.
DailyFX Individual Currency Pair Conditions and Trading Strategy Bias
DailyFX PLUS System Trading Signals –Sharp declines in FX market volatility and options market volatility expectations have made for especially quiet trading, and we have positioned ourselves in favor of further range trading going forward.
The especially low US Dollar volatility favors further losses. Why? The US Dollar has been one of the foremost safe-haven currencies for some time now.
If markets are suddenly scared and risky assets such as the US S&P 500 tumble, the USD most often strengthens. Given that the S&P trades near multi-near highs and markets have grown incredibly complacent, we wouldn’t look to fade the recent US Dollar downtrend.
We favor USD weakness against the Australian Dollar, Canadian Dollar, and New Zealand Dollar especially. These currencies will tend to do well in such times of market complacency.
Market Conditions:
Volatility expectations trade near their lowest levels since the onset of the financial crisis in 2008. Such extremely low levels favor slow trends and tight currency trading ranges until further notice.
Source : DailyFX
DailyFX Individual Currency Pair Conditions and Trading Strategy Bias
DailyFX PLUS System Trading Signals –Sharp declines in FX market volatility and options market volatility expectations have made for especially quiet trading, and we have positioned ourselves in favor of further range trading going forward.
The especially low US Dollar volatility favors further losses. Why? The US Dollar has been one of the foremost safe-haven currencies for some time now.
If markets are suddenly scared and risky assets such as the US S&P 500 tumble, the USD most often strengthens. Given that the S&P trades near multi-near highs and markets have grown incredibly complacent, we wouldn’t look to fade the recent US Dollar downtrend.
We favor USD weakness against the Australian Dollar, Canadian Dollar, and New Zealand Dollar especially. These currencies will tend to do well in such times of market complacency.
Market Conditions:
Volatility expectations trade near their lowest levels since the onset of the financial crisis in 2008. Such extremely low levels favor slow trends and tight currency trading ranges until further notice.
Source : DailyFX
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