On Tuesday, we talked about how volatility in the forex market has exploded in 2008. Although trading ranges expanded significantly in October and November, volatility has contracted since the beginning of the month.
The following chart from Bloomberg illustrates how far 3 month volatility for the EUR/USD has fallen since hitting a record [...]

Posted in Carry Trades, Forex, Forex News, Forex Technicals, currency trading ranges, forex blog, usd/jpy 2 Comments »

Forex trading ranges have exploded over the past few months. The daily average trading range has doubled for all of the actively traded currency pairs in 2008, with some currency pairs even seeing a 200% rise in their average daily range.
However the big explosion in volatility has actually happened in the past 9 weeks. [...]

Posted in Day Trading Currency, EURJPY, Forex News, Forex Technicals, New Zealand dollar, USD/CAD, currency trading ranges, eur/gbp, eur/gbp record high, eur/usd, forex blog, forex book, fx trading ranges, usd/jpy 8 Comments »

Every day, equities, currency and bond traders weigh the good news with the bad to determine if they want to buy or sell.
Today, there were just as many positive reports that should have helped to stabilize the markets but has instead failed to stem the bleeding in equities and currencies.
In a [...]

Posted in Australian Dollar, British Pound, Canadian Dollar, Carry Trades, ECB, Forex News, US Dollar, USD/CAD, currency trading ranges, election dollar, euro oil, forex blog, forex trading calendar, usd/jpy 1 Comment »

We all know that the daily trading range of the major currency pairs have expanded, but by how much?
Compared to 2007, the daily average trading range for the EUR/USD year to date has increased 195%. The average range for GBP/USD has increased 150% while the range for USD/JPY has expanded by 140%.
Since the beginning [...]

Posted in Canadian Dollar, Forex News, Japanese Yen, US Dollar, currency trading ranges, euro, forex blog, fx trading ranges 1 Comment »