Yesterday market participants were focused on the FOMC’s decision concerning the stimulation of the US economy. For the trading day GBPUSD passed only about 100 pts. At the same time the level of volatility was high. During Ben Bernanke’s speech it gained 3%. As it had been expected, all the economic reports before the press conference were ignored by the market.
Today’s news background is going to be rich in economic reports. But some of them (including the EU’s manufacturing PMI and industrial orders and the USA’s initial jobless claims), will may well influence the market and its level of expected volatility.
GBPUSD is currently being traded between 1.5474 and 1.5388 (2 secondary option barriers). The level of volatility is still overheated that is why it is still not recommended to purchase volatility.
Provided by the Department of Options,
