Forex Conqueror

Enter The New World Of Currency Trading

The dollar has put in for a remarkable showing in volatility terms this past 24 hours, and that is likely to carry through over the final hours of this trading week. However, as we’ve discussed before: volatility does not necessarily translate into trend generation. There is a lot in the fundamental backdrop currently that can stir volatility for the greenback, but underlying risk trends are once again holding the reins. If the greenback is playing its risk appetite connections, its erratic performance makes a little more sense. T

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No Fear

The VIX volatility index is down once again today, even as the market trades lower.  Last week when the market was tumbling, the VIX also declined , which is unusual, especially given the concerns that seem to abound regarding Europe.  As shown below, the VIX is now at its lowest level since early August after breaking below its October lows a few days ago.  In October when the VIX made its lows, the market was surging.  The market has done anything but surge over the past week and a half.  Are traders ignoring the worlds problems, or are they indicating that things arent as bad as they seem?

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  • End of month flows could influence trade
  • Euro risks still tilted to upside with focus on establishment above 1.3500
  • Yen stabilized after bout of intense selling
  • Global equities remain very well supported but still see risks for pullback
  • ECB LTRO on Wednesday remains in focus

We are in the final days of February and markets always have an added tendency of additional volatility on the end of month flow-related activity.

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Euro: Portugal Sees Larger Contraction In 2012, EU Summit In Focus

The EURUSDextended the decline from earlier this week as the Organization for Economic Cooperation and Development talked up the risks surrounding the euro-area, and the exchange rate may weaken further over the remainder of the week as the fundamental outlook for the region turns increasingly bleak.

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