Saturday, January 28, 2023
Forex Broker News
  • Home
  • Forex Broker Reviews
    • All
    • Preferred Brokers
    • Regulated Brokers
    • Unregulated Brokers

    VastWealth Review

    Stockscale Review

    Fibinex.io Review

    Homefx-Plus Review

    StockHome.io Review

    LegacyFX Review

    Crypto Dock Review

    City Index Review

    Forex.com Review

  • Broker Types
  • Forex & Fintech Jobs
  • News
No Result
View All Result
  • Home
  • Forex Broker Reviews
    • All
    • Preferred Brokers
    • Regulated Brokers
    • Unregulated Brokers

    VastWealth Review

    Stockscale Review

    Fibinex.io Review

    Homefx-Plus Review

    StockHome.io Review

    LegacyFX Review

    Crypto Dock Review

    City Index Review

    Forex.com Review

  • Broker Types
  • Forex & Fintech Jobs
  • News
No Result
View All Result
Forex Broker News
No Result
View All Result
Home News Forex Broker News fxpro

Currency and stock volatility update lows. Is the reversal close?

Mini-fluctuations are still going on in the markets. However, the stock markets remain upward, while in the currency market the dollar is stuck approximately at an equal distance from the upper and lower extremes of October.

It is easy to describe this market situation as complete lull, as both intraday trading ranges and expected volatility are decreasing. The VIX index – the index of the implied volatility of the S&P500 declined on Tuesday below 12.0 – the lowest since October 2018. Immediately after touching the local lows at 11.3 for VIX, the S&P500 turned down, losing more than 20% during the next 60 trading sessions.

At the beginning of 2018, after VIX reversal from that time lows, S&P 500 experienced a 12% drop over the subsequent two weeks. However, investors should remember that a low level of volatility is not a signal to the market reversal. During 2017, VIX was repeatedly under ten, but the markets were climbing up persistently. For traders, the most prominent symptom is a sharp jump in volatility after a period of exceptional calm. So far, along with the declining volatility, the markets grew, a bit tired of this process, but not changing their direction.

There is a quite similar situation on the currency market right now. Recently, EURUSD volatility fell to 5-year lows. Many experienced currency market traders remember that alarming calm among the major currency pairs in early 2014th. After the calm EURUSD saw a continuous and robust trend, weakened by 22% from August 2014 to March 2015.

Formally, the EVZ (EURUSD Volatility Index) does not have to grow when the EURUSD declines, but should only reflect an increase in the spread of expectations on the pair. However, over short index history (just over ten years), the dollar tends to jump sharply and decrease smoothly. So, jump in the EVZ index is likely accompanied by dollar strengthening.

ADVERTISEMENT

If it coincides with similar dynamics of VIX, it will be possible to talk about a full-fledged escape to the protective assets and increased market turbulence.

Once again, the volatility grip continues to compress, which may keep indefinite time. A more sensible strategy for investors with VIX and EVZ perspective is to wait for a jump, rather than bet against the market trend now. One should remember that the decrease in volatility is only a sign of calming the markets, not their reversal.

The FxPro Analyst Team

Share197Tweet123ShareSend

Related Posts

fxpro

Ebay Wave Analysis – 18 December, 2019

November 4, 2022
fxpro

EURUSD Wave Analysis – 18 December, 2019

November 4, 2022
fxpro

Christmas and New Year Holiday Trading Schedule

November 4, 2022
fxpro

Bit-comment: Bitcoin bounced after the drop

November 4, 2022
fxpro

US Fed Official Says 50% of Bitcoin Transactions Associated With Illegal Activity

November 4, 2022
fxpro

NTGUSD Wave Analysis – 18 December, 2019

November 4, 2022

Select one of the Best Forex Brokers for your Trading  |  Read the Reviews

VastWealth Review

Stockscale Review

Fibinex.io Review

Homefx-Plus Review

StockHome.io Review

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 65-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money. forexbroker.news is an affiliated partner with various Forex brokers and may be compensated for referred Forex traders.

Risk Disclosure: Forexbroker.news assumes no liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and forex signals. Operations in the international foreign exchange market contain high levels of risk. Forex trading may not be suitable for all investors. speculating only the money you can afford to lose. Forexbroker.news remind you that the data contained in this website is not necessarily real-time and may not be accurate. All stock prices, indexes, futures are indicative and not appropriate for trading. Thus, Forexbroker.news assumes no responsibility for any trading losses you might incur as a result of using this data.You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Disclaimer: It is our organization's primary mission to provide reviews, commentary, and analysis that are unbiased and objective. While ForexBroker.News has some data verified by industry participants, it can vary from time to time. Operating as an online business, this site may be compensated through third party advertisers. Our receipt of such compensation shall not be construed as an endorsement or recommendation by ForexBroker.News, nor shall it bias our reviews, analysis, and opinions.

  • Privacy Policy
  • Contact US
  • Terms of use,

Copyright © 2020 forexbroker.news

No Result
View All Result
  • Home
  • Forex Broker Reviews
  • Broker Types
  • Forex & Fintech Jobs
  • News

© 2020 https://forexbroker.news - Forex Broker news & magazine