US DOLLAR PRICE VOLATILITY REPORT: OPTIONS IMPLIED USD TRADING RANGES FOR NEXT WEEKThe US Dollar recorded a formidable rally over
US DOLLAR PRICE VOLATILITY REPORT: OPTIONS IMPLIED USD TRADING RANGES FOR NEXT WEEK
- The US Dollar recorded a formidable rally over the past 5 buying and selling days and has pushed the DXY Index to check its downtrend resistance line and 50-day easy transferring common
- Foreign money volatility is at extremes with EUR/USD 1-week implied volatility of three.67% at its lowest stage on document relationship again to 1999
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I identified in Thursday’s US Dollar Price Volatility Report that USD value motion may gain advantage from a protracted extension greater. This expectation was largely predicated on resurfacing draw back threat confronted by the Euro amid rising uncertainty stemming from commerce uncertainty and the excellent risk that Trump could slap further tariffs on the EU items.
The discharge of worse-than-expected preliminary Eurozone PMI data from IHS Markit for November may function one other fundament driver that explains Friday’s sharp drop in spot EUR/USD costs and surge within the DXY Index. November US PMI knowledge topped consensus estimates on each companies and manufacturing, which is detailed on the DailyFX Economic Calendar.
US DOLLAR INDEX PRICE CHART: DAILY TIME FRAME (MAY 10, 2019 TO NOVEMBER 22, 2019)
Chart created by @RichDvorakFX with TradingView
The leap within the…