FX Focus On Commodity Bloc
Dailyfx | Jul 13, 2015 12:50PM ET
- Market volatility risks drop considerably on Greek agreement with creditors
- US Dollar remains in control, steady uptrend
- High volatility in Commodity Bloc remains our focus via the Breakout2 trading system
Volatility prices have tumbled as an agreement between Greece and its creditors takes significant tail risk off of the table. We’re shifting trading biases accordingly.
The US dollar has remained our favored trade across the board as clear market uncertainty fueled demand for the safe-haven currency. A sharp drop in volatility prices removes one fairly important pillar of support for the US currency, but a continued overnight rally suggests the dollar isn’t done quite yet.
Forex Volatility Prices Drop Notably on Reduced Greek Risks, Focus turns to Commodity Bloc Pairs
Data source: Bloomberg, DailyFX Calculations
Thus our focus turns to US dollar trades versus the Commodity Bloc—the Canadian, Australian, and New Zealand dollars—as the Greenback hits fresh highs. And indeed our volatility-friendly Breakout2 remains attractive on a handful of currency pairs.
A key caveat is that our trading biases could change if we see a similar drop in Commodity Bloc volatility, but until that happens we’ll stick to our recent calls.
See the table below for full detail on market conditions and preferred trading strategies.
DailyFX Individual Currency Pair Conditions and Trading Strategy Bias
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.