The chart below shows the ATR 15 (15-day average of price volatility) for the three major currency pairs, and the average of the three, over the last ten years.
Last Thursday, the U.S. stock market saw a big jump up to new all-time record high prices, as it become clear that President Trump’s tax cut bill was going to pass the U.S. Congress.
After a dull couple of days, markets came to life yesterday as several events of interest to the market came to a climax:
Perhaps I jinxed a couple of market trends yesterday by writing about them – EUR/USD and GBP/USD have since rolled over and broken below their linear regression channels! I mentioned Crude Oil, which had already broken its channel a few days ago.
At the end of last week there were four clear trends holding steady over both short and long-term timeframes: EUR/USD, GBP/USD, Crude Oil, and the S&P 500 Index.
When it comes to crypto, its Bitcoin that’s been hogging the headlines lately, as it has advanced from strength to strength ever since it bounced at $3000 when the CEO of JP Morgan tried to talk it down.
I wrote yesterday that the most likely opportunity for traders coming from the FOMC Minutes release would be a dovish, short Dollar surprise which could come if the minutes showed stronger concern about a further hike next month while the rate of inflation remains so low.
This afternoon New York time, the Federal Reserve will release the minutes of the previous FOMC meeting, which sets the interest rate and provides forward guidance for the market in the U.S. Dollar in the shape of economic projections and textual commentary.