We haven't even started the year and the market is already posting some crazy volatility in a thin liquidity environment like the Asia session, and this is just the precursor of what may to come. As last year was we saw a perfect symmetry of volatility where in the first half of the year the volatility was pushing towards multiple all time low levels in the second part we saw a pick up in volatility (see Figure 1)
This pick up in volatility doesn't support the financial system stability, quite contrary it spells: RISK. Even the current policy divergence between major economies says higher volatility ahead, so trade accordingly.
Best Regards,
Daytrader21
Figure 1. FX Volatility Deutsche Bank Currency Index
This pick up in volatility doesn't support the financial system stability, quite contrary it spells: RISK. Even the current policy divergence between major economies says higher volatility ahead, so trade accordingly.
Best Regards,
Daytrader21