Forecast: Volatility in currency market may increase in February

Baku. 19 December. REPORT.AZ/ The US-dollar fought back a bit late last week to end the week on a relatively strong note, but then failed to open significantly stronger for this week’s trading despite the news that the GOP’s tax reform bill is now more likely to pass as some holdouts, including the Trump-critical Bob Corker, have now announced their support.

Report informs, Danish Saxo Bank said in a report on the global currency market.

EUR/USD is a study in failing to commit directionally as implied volatility also collapses. The latest action shows that the low 1.1700 are an important downside pivot while the upside focus could develop around the descending line of consolidation, but the round 1.2000 level is the bigger psychological hurdle for further progression higher.

The bank will play a role of catalyst for the euro exchange rate.

Saxo Bank believes that declining volatility in the currency market may be eliminated by China or the dynamics of US bond market in the second half of February.