Talking points of the day :
- Kuroda discusses BOJ policy and Japan's economy with Japanese PM Abe in Tokyo.
- BOJ's Kuroda notes to Abe he won't hesitate to act if the central bank's inflation target is not reached.
- The Deutsche Bank G10 FX Volatility Index (CVIX) is testing the bounds of a 3-year down trend after surging to the highest level in 7 months
- Commodities Update: NYMEX WTI Crude: 91.78 (+0.12%), Brent: 98.06 (+0.02%), Gold: 1,248.8 (-0.08%), Silver: 18.96 (-0.05%)
• Top event risk in BoE testimony and an RBNZ rate decision generated clear volatility for GBP and NZD
• Event risk versus theme means the US Dollar remains the most motivated currency
• Whether Dollar, Pound, Euro or other major; key event risk ahead is going to further warp volatility
Equipped with high-level event risk this past session, GBPUSD experimented with reverse its bear trend while NZDUSD looked to extend its 600-point crash. Yet, after a short bout of volatility; neither pair made progress like the trend development from the past two 2 or 3 weeks. To some scope, the BoE Account, new Scottish Referendum poll quantities and RBNZ charge decision don't materially transform the dominant simple themes. Yet, a moderation with trend may confirm more systemic than just the products upcoming event possibility. With the surge in volatility, industry is projecting weighty swings in not to distant future through major event risk much like the Fed rate determination, UK CPI, Scotland vote, ECB TLTRO allotment along with key milestones.
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