Risk trends are increasingly active as a market mover, but we have yet to see a lasting trend develop behind this principal theme. Investors may be holding out hope for the same fundamental backing that has held the system together to this point despite record low market yields and record levels of leverage – stimulus.
The FOMC’s next rate decision – where the market expects to hear the time frame for the dreaded ‘taper’ occurs the following week (June 19). That said, greed and fear doesn’t necessarily wait for specific cues. Risk appetite and risk aversion can prove their own force of nature, and that may very well be the genesis of the next market-wide trend.
In the meantime, we will have sparks of volatility along the way. Notable event risk like the UK and Aussie employment figures, US retail sales, the RBNZ rate decision and US consumer sentiment survey are all capable of stirring a sharp move from their respective currencies.
Top event risk for the week though – and therefore the event we host in DailyFX Plus – is the Bank of Japan Rate Decision. Extreme volatility has plagued the Japanese markets – Nikkei 225, JGBs (government bonds) and even the yen. Officials are trying desperately to balance a disparate stimulus regime, demographical economic issues and souring global investor stimulus.
Trade the News Live with DailyFX(Link)
- Wed (Jun 12, 08:30 GMT) – UK Jobless Claims (MAY) withChristopher Vecchio, Currency Analyst
- Wed (Jun 12, 21:00 GMT) – RBNZ Rate Decision withJohn Kicklighter, Chief Strategist
- Thur (Jun 13, 01:30 GMT) – Australian Employment Change (MAY) withIlya Spivak, Currency Strategist
- Thur (Jun 13, 11:45 GMT) – US Retail Sales (MAY) withDavid Song, Currency Analyst
- Fri (Jun 14, 13:55 GMT) – UofM Consumer Confidence (JUN P) withKristian Kerr, Senior Currency Strategist
Free Strategy and Forecast Webinars on DailyFX.com(Link)
- Mon (Jun 10, 00:00 GMT) – FX, Gold and Equity Outlook with Ilya Spivak, Currency Strategist
- Mon (Jun 10, 12:30 GMT) – Scalping with Michael Boutros, Currency Strategist
- Mon (Jun 10, 14:00 GMT) – Forex Strategy Outlook with David Rodriguez, Quantitative Strategist
- Mon (Jun 10, 18:00 GMT) – Technical Trading Setups with Jamie Saettele, Senior Technical Strategist
- Tues (Jun 11, 15:00 GMT) – Trade Like a Hedge Fund Trader with Kristian Kerr, Senior Currency Strategist
- Wed (Jun 12, 01:00 GMT) – Australian Market Outlook with David de Ferranti, Market Analyst
- Wed (Jun 12, 15:00 GMT) – Automate Your Trading with the DailyFX-Plus Sentiment Based Trading Strategies with David Rodriguez, Quantitative Strategist