Yesterday the market was relatively calm. Strange as it may seem but yesterday’s news reports failed to influence the volatility of GBPUSD. It only passed 70 points during the trading sessions. It was mainly caused by the FOMC data. During the first part of the day GBPUSD rallied while during the second part it declined, which means that the current economic situation around the world causes an imbalance between the bulls and the bears.
Today we may see the currency pair finally deciding on the direction of the future (near-term) trend. The following news reports will probably become the market drivers: jobless claims (US) and ISM Manufacturing PMI (US).
The Department of Options, , expects the volatility of GBPUSD to grow right before the news releases. However, the main impact will be seen in a couple of days as the US government’s further steps (on economic recovery) will depend on these data.
It is still recommended to make volatility purchases only at low prices as the indicator may decline any minute.
