Forex

October is traditionally a volatile month in the financial markets and we got a taste of those big swings today with risk appetite reversing suddenly.

Investors kicked off this busy trading week with concerns about how central bank policy will shift in a broader recovery.

October is generally a challenging month for equities with some of the biggest market crashes happening this month but the fourth quarter is typically a good one.

The U.S. dollar traded sharply higher against all of the major currencies on Tuesday as Treasury yields surged and stocks plummeted.

Investors kicked off the week with renewed demand for U.S. assets. The Dow Jones Industrial Average rallied for the fifth straight trading day while the U.S. dollar strengthened versus the euro, Japanese Yen and Swiss Franc. 

The precision in the central bank’s timing for taper is very hawkish even as they say rate hikes are far away. Investors braced for a dance around taper timing but with inflation expected to remain elevated “for months before moderating,” the time has come to act.

There are only 3 more Federal Reserve announcements before year end If Powell wants to give the market ample time to prepare for tapering asset purchases….

This is one of the busiest trading weeks of the year and for this very reason, volatility in the stock market as measured by the VIX rose to its highest level in 4 months.

The U.S. dollar extended lower against most of the major currencies on Wednesday despite a stronger Empire State manufacturing survey.  According to this report, activity in the New York region soared in September with the index rising to 34.3 from 18.3

The European Central Bank delivered exactly what the market expected on Thursday. They slowed bond purchases and raise their inflation forecasts.