Markets ended the session somewhat stronger, but there is still quite a lot of volatility which may mean that traders err on the side of caution.

The Dow ended the session higher, but plenty of volatility still remains. After remaining flat for most of early trading, the Dow reached lows of 24,550.48. It gradually piled on over 700 points to reach session highs of 25,295.24. It proceeded to then pull back off those highs to lose as much as 560 points before bouncing back slightly to be currently trading at 24,808.30. The Dax hit session lows early, dropping to 12,408.25. It then gained as much as 240 points to hit session highs of 12,650.11. It then dropped as much as 170 points before bouncing back to its current trading level of 12,534.15.

The EUR/USD trended lower in the trading session with the USD strengthening as it benefits from its status as the main ‘safe-haven’ currency. The pair reached session highs of $1.24050 before tumbling to session lows of $1.22441. It is currently not far off those lows, now at $1.22566. The same could be said for the GBP/USD pair. It spiked early to session highs of $1.39937 before ebbing and flowing lower to session lows of $1.38464. It has recovered a little, trading at $1.38698.

Market turbulence aside, the most significant event for today is the BoE interest rate meeting. This is crucial as it gives markets an insight into the thinking of UK central bank policymakers. While rates are expected to remain on hold, this meeting is also important as it can include clues to the economic outlook for the UK as well as future monetary policy settings. Other data set for release today include:

China – Trade Balance, USD-Denominated Trade Balance

NZ – RBNZ Governor Grant Spencer speaks

Japan – Bank Lending, Current Account, Economy Watchers Sentiment

Australia – NAB Quarterly Business Confidence, RBA Governor Philip Lowe speaks

UK – Asset Purchase Facility, BoE Inflation Letter, RICS House Price Balance

US – Unemployment Claims, Mortgage Delinquencies, Natural Gas Storage

Canada – Housing Starts, NHPI, BoC Senior Equity Deputy Governor Carolyn Wilkins speaks

Europe – German Trade Balance, ECB Economic Bulletin, German Buba President Jens Weidmann speaks

Disclaimer: The views expressed in this blog are those of the author only. Opinions offered in this blog are no guarantee of market direction and performance. Traders/Investors should not rely on this blog alone for their market information. This blog is not an indicator of market direction and performance. Trading the forex market is high risk and losses can exceed deposits.