Look at the Buck while waiting for Draghi

Today's Highlights

FX Rules!

Look at the Buck

Draghi's Serve

Please Note: All data figures and graphs below are valid as of January 19th. All trading carries risk. Only risk capital you can afford to lose.

 

Market Overview

The stock markets remain uninteresting. The SP500 has managed to close its 67th day without a 1% pullback and the Dow Jones refuses to breach the 20K level. The VIX volatility index has remained below the low level of 13 since the beginning of the year.

Virtually all the action is in the currency markets at the moment. Volatility in foreign exchange remains at the levels seen on the night of Trump's election and has not dipped below since.

That's where the action is my friends. For long term investors or copytraders, be aware but don't worry about all this, for short term traders, it's money time!

As always, be safe, of course.

 

The Dollar

Here are some of the moves caused by Yellen's uncanny remarks yesterday. Click/tap the images to enlarge.

USDOLLAR Index (5 minute per candle)

Here's a lightly zoomed out view of USDJPY (1 hour per candle)

Oddly enough, the Ger30 had a bit of a reaction as well.

 

Up Next

Today it's Mario Draghi's turn to serve. The President of the European Central Bank will deliver his first press conference of the year. A year that will see potentially unsettling elections in Europe.

At the moment, the ECB is relying quite heavily on their stimulus during a period of time when the rest of the world seems to be heading the other way. December's decision to reduce the stimulus package was a big one and with everything happening in the world right now, Draghi could easily get away by coasting through this speech with neutral and ambiguous statements. 

Something like, we are assessing the impact of our last decision and will decide how to proceed going forward. *yawn*

However, this is a high profile event, and with the volatility on the currencies at the moment, even the slightest gesture can create tidal waves in the markets. @ItradeSoWhat Louis Fraanje from the Netherlands commented about his buy position on the EURUSD as follows.

Wishing everyone an amazing day ahead filled with fun and excitement.