(MENAFN- DailyFX) Forex volatility seems near-guaranteed on a pivotal week for the US Dollar. Our focus turns to high-volatility trading with a special focus on USD and GBP pairs.
Short-term volatility prices/expectations have surged to their highest since mid-January as traders predict important financial market moves on a highly-anticipated US Federal Reserve rate announcement. Recent shifts in global interest rate markets as well as the S&P 500 and broader equities make the next market moves especially significant; despite hitting record-highs in February, the S&P has now traded lower for three consecutive weeks and effective erased all year-to-date gains.
Whether or not equity markets can recover from the recent market shift may depend on the Fed's next moves, and the overall uncertainty leaves us in favor of high-volatility trading strategies across highly-affected currency pairs.
The Trading Strategy Bias table below highlights which currency pairs are at especially high risk of major moves and strategies we believe appropriate to given market conditions. We are broadly shifting in favor of more volatility-friendly strategies given the fairly substantial shift in broader sentiment.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.