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breaking news Overall market sentiment holds so far today


The dollar is weaker across the board as it is giving back some of the gains made in recent times. That said, even with a 1% jump in the Cable, it is still barely felt with price hovering just above 1.0800 on the day. Elsewhere, the dollar’s position is also consolidated with USD/JPY down 0.3% but still around 144.30 and close to the 145.00 level – where Japanese authorities intervened for the first time since 1998. last week.

The Euro also remains in dire straits, just above 0.9600 against the Dollar today as traders begin to get used to the idea of ​​the currency pair holding below parity. Against commodity currencies, the greenback is losing ground but against the backdrop of last week’s moves, It’s just a scratch.

One day does not trend, but with month-end trading approaching, there may be room for a slight course correction in the dollar and that could also see broader market sentiment hold. in the coming days.

Turning to stocks, US futures are faring much better after yesterday’s decline, with S&P 500 futures up 42 points, or 1.1%, so far. But perhaps the biggest nod to the broader markets is that bonds are able to end the rout for now.

10-year gilt yields are down 11 basis points at 4.12% while 10-year Treasury yields are down 4.5 basis points at 3.835% currently and that’s in my view allowing markets to breathe a sigh of relief today. But that doesn’t mean things are looking up or that the dark clouds are finally dissipating.

We are at a point where volatility

Volatility

In trading terms, volatility refers to the amount of change in the rate of an index or asset, such as forex, commodities, stocks, over a given time period. Trading volatility can be a way of describing the fluctuation of an instrument. For example, a highly volatile stock equates to high price swings, while a low volatility stock equates to low price swings. Overall, volatility is an important statistical indicator used by many parties, including financial traders, analysts, and brokers. Volatility can be an important determinant in the development of trading systems, protocols or regulations. In retail, traders can be successful in both low and high volatility environments, but the strategies employed are often different depending on the volatility. Is volatility good or bad? In the forex space, lower levels of volatility on currency pairs offer fewer surprises, moves and are suitable for certain types of individuals such as position traders. By extension, highly volatile pairs are attractive to many day traders. This is due to fast and strong moves, which collectively offer higher profit potential. However, the risks associated with these volatile pairs are manifold. It should be noted that the volatility of instruments or indices can and does change over time. There can be periods when even very volatile instruments show signs of stagnation, with the price not really moving in either direction. For example, certain months in the summer are associated with low trading volatility. Too little volatility is just as problematic for the markets as too much. Too much volatility can cause panic and create its own problems, such as liquidity constraints.

In trading terms, volatility refers to the amount of change in the rate of an index or asset, such as forex, commodities, stocks, over a given time period. Trading volatility can be a way of describing the fluctuation of an instrument. For example, a highly volatile stock equates to high price swings, while a low volatility stock equates to low price swings. Overall, volatility is an important statistical indicator used by many parties, including financial traders, analysts, and brokers. Volatility can be an important determinant in the development of trading systems, protocols or regulations. In retail, traders can be successful in both low and high volatility environments, but the strategies employed are often different depending on the volatility. Is volatility good or bad? In the forex space, lower levels of volatility on currency pairs offer fewer surprises, moves and are suitable for certain types of individuals such as position traders. By extension, highly volatile pairs are attractive to many day traders. This is due to fast and strong moves, which collectively offer higher profit potential. However, the risks associated with these volatile pairs are manifold. It should be noted that the volatility of instruments or indices can and does change over time. There can be periods when even very volatile instruments show signs of stagnation, with the price not really moving in either direction. For example, certain months in the summer are associated with low trading volatility. Too little volatility is just as problematic for the markets as too much. Too much volatility can cause panic and create its own problems, such as liquidity constraints.
Read this term is extremely high and there are serious financial dislocations that may (or are) taking place. The global bond market itself is much more than 1/5 of its value this year alone and much of that remains long in the dollar is the only game in town in trading this year.

When even the bond market goes into overdrive, that’s a major red flag for risk assets in particular and reason enough for the reaction we’re seeing in broader markets this year – especially in recent weeks. .

These charts from @biancoresearch are a damning example of the bond market at this point compared to historical times:


cnbctv18-forexlive-benzinga

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