Yesterday’s news background made volatility buyers happy. The British Pound lost over 100 pts against the US Dollar. GBPUSD broke and consolidated below the significant level of support located at 1.6327.
The UK’s credit market data and the USA’s housing prices and CCI.
Today the currency pair is being traded between 1.6232 and 1.6327, 2 option barriers. Today’s news background is likely to cause a breakout of the range as the day is going to be rich in major economic reports, including the eurozone’s inflation and unemployment rate, and the US block: ADP national employment, challenger layoffs and mortgage market data.
According to the Department of Options, , considering the current tensions in the global economy, the markets are very sensitive about any value gaps between the real values of indicators and the forecasts for them, reacting with volatility spikes. In this case it is recommended to buy volatility only at very low prices.
