Is the Euro Market Now Sitting On The Fence?
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
Where has all that volatility gone? Volume, depth and market interest cannot have already peaked? After an encouraging start to the New Year for forex investors, currency market seems again to have settled into a narrow range. That is even the same for the most dominant of trades, being short yen against anything else. For 24-hours we saw yen get the upper hand as the market punished and profited from the BoJ, who may or may not have been dovish enough for investors liking. It was all in the timing-2014 was perceived being a tad too far away for Asset Purchase changes!
However since then, USD/JPY has neatly pushed itself deep, well above 89, boosted by comments from deputy economy minister Nishimura that the yen at 100 is no problem for Japan. The EUR on the other hand continues to trade sideways, now that after the US House of Representatives voted to suspend the debt ceiling until May, has allowed some of this market volatility to recede. Two trains of thought have the...