Friday, May 27, 2022
Forex Broker News
  • Home
  • Forex Broker Reviews
    • All
    • Preferred Brokers
    • Regulated Brokers
    • Unregulated Brokers

    Duvaro Review

    Cupiro Review

    Calliber.io Review

    StockHome.io Review

    Acri Pro 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

    Duvaro Review

    Cupiro Review

    Calliber.io Review

    StockHome.io Review

    Acri Pro 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 fpmarkets

Currency Point: Deciphering DXY

The risk-on rally of the past month continues to rage ahead, equities in the US are touching extreme overbought levels, but markets have not crossed levels that signal ‘complacent’ however, they are edging closer. 

 

One indicator we are watching closely is the relationship between implied and realised volatility. Implied volatility tends to follow realised volatility – therefore in the current market scenario the more markets remain ‘calm’, the lower implied volatility will tick. This will catch markets off guard when a shock is triggered – examples include Brexit, US-China trade issue, Hong Kong unrest.

 

From a currency perspective, it’s around rates and in particular the potential of rising US rates. 

 

Seeing interest rates and equities rising simultaneously historically is an indicator of global reflation, however, historically corporate didn’t have the level corporate indebtedness US firm, in particular, have currently and this is coupled with a worsening corporate profit outlook. 

 

Thus, if rates are to rise in 2020 debt consolidation would be expected having come off peaks. These consolidation periods tend to be associated with slow growth and currency weakness – which argues poorly for USD. Certainly, something that is forming a basis for currency trading over the coming months. 

 

Now, the Fed at the October meeting did set the bar rather high for it to move rates in either direction. Now clearly the absence of rate hike risk should keep USD rates contained, helping to reduce the USD’s rate variance. 

 

But, we also argue that the Fed’s nonchalant position to cutting further is USD bearish, as the backstop that has been monetary policy may need a ‘bigger nudge’ to prop up the market. 

Meanwhile, the absence of rising political risk from the US-China trade war and to some extent Brexit should support USD selling with particular risk currencies such as GBP, AUD and EMFX. Therefore, a break below the mid-October low of 97.14 in DXY would be a confirmation of our expected USD bearish signal.

The post Currency Point: Deciphering DXY appeared first on FP Markets.

ADVERTISEMENT
Share197Tweet123ShareSend

Related Posts

fpmarkets

Customer Relationship Officer – Polish

November 8, 2020
fpmarkets

China – Marketing Manager

November 8, 2020
fpmarkets

Iress Clients Margin Changes

May 9, 2022
fpmarkets

Customer Relationship Officer – Vietnamese

August 6, 2020
fpmarkets

Australian market expected to open lower 31/12/19

May 9, 2022
fpmarkets

Australian market expected to open lower 30/12/19

May 9, 2022

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

Duvaro Review

Cupiro Review

Calliber.io Review

StockHome.io Review

Acri Pro 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

Posting....