But this week we want to focus on the volatility of the Forex, synthesized by the Deutsche Bank Fx Volatility Index). As we can see in the graph, the volatility has dropped to the lowest levels from 2007 to July 2014, before taking off with a substantial doubling in value in the last fiery sessions. In fact, we are facing a bullish break of a volatility tendency to compression that was going on since 2009. Just a change at 30 weeks of + 50% and the approach of the historical average of 10%, act as a watershed for the future scenario. In 2011 and 2013, we witnessed some similar flare-ups that did not produce other effects, while in 2007 the demolition of the down trend line and the simultaneous overcoming of 10 caused a disorderly currency movement that we all memory. Indicator to be followed especially for the possible effects of commodities and emerging currencies (graphic source: Metastock and Bloomberg).
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EUR/USD stays weak near 1.0650 ahead of Eurozone PMI data
EUR/USD remains on the back foot near 1.0650 in European trading on Tuesday. Resurgent US Dollar demand amid a cautious risk tone weighs on the pair. Investors stay wary ahead of the preliminary Eurozone and US business PMI data.
GBP/USD eases below 1.2350, UK PMIs eyed
GBP/USD is dropping below 1.2350 in the European session, as the US Dollar sees fresh buying interest on tepid risk sentiment. The further downside in the pair could remain capped, as traders await the UK PMI reports for fresh trading impetus.
Gold could see a rebound before resuming the correction
Gold price sees a fresh leg down in Asia on Tuesday even as risk flows dissipate. Receding fears over Middle East escalation offset subdued US Dollar and Treasury bond yields. Gold remains heavily oversold on the 4H chart, rebound appears in the offing.
PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange
Pendle is among the top performers in the cryptocurrency market today, posting double-digit gains. Its peers in the altcoin space are not as forthcoming even as the market enjoys bullish sentiment inspired by Bitcoin price.
Focus on April PMIs today
In the euro area, focus today will be on the euro area PMIs for April. The previous months' PMIs have shown a return of the two-speed economy with the service sector in expansionary territory and manufacturing sector stuck in contraction.