Volatility Profiles of Major Pairs

The markets came back to life yesterday, with the U.S. stock market recording its largest one day fall since the U.S. Presidential election, and the USD/JPY currency pair also making a strong movement. Markets during the final few days of the calendar year often continue to move strongly in the direction of the prevailing trend, which currently is long stocks and the U.S. Dollar, but this does not currently seem to be the case. Continue reading…

FOMC Leads Expectation of Tighter U.S. Monetary Policy

For only the second time in the last ten years, the Federal Reserve has now raised U.S. interest rates. That move was a virtual certainty, so there is not much of note there. The market’s focus instead is on the FOMC’s forecasted future rate hikes, which have increased from an anticipated 2 during 2017 to 3, with the long-term interest rate now seen higher at 3%.  Continue reading…