Helena Izotova
Yesterday’s trading session was relatively calm for volatility buyers. There was almost no significant news. However, even major economic reports would probably have failed to attract investors’ attention in advance of the FOMC’s decision on the US economic stimulation (The meeting was started yesterday and will be continued today).
The level of volatility is around its max value, with GBPUSD being traded in the 1.5721 - 1.5911 range.
Today’s news background is expected to be poor as well. Existing Home Sales (US) is probably the only major report for today. It is expected to show a 0.1pt increase. Any major deviation for the forecast may cause a volatility increase. However, it is nothing if compared to Ben Bernanke’s speech.
At the moment GBPUSD is being traded around the option barrier 1.5721. It is still not recommended to buy the volatility of GBPUSD as its value is high.
Provided by the Department of Options,
Helena Izotova
