Tuesday, October 19, 2010

Volatility in the market of actives

The main liquid measure volatility the markets of actives, the indicator VIX, has returned above level in 20 yesterday, being movable growth volatility in the currency markets. Low volatility does investors "happy" at current levels and aren't ready to pay for protection by options (or the insurance) from more volatility the markets in the future. Growth corresponds to the conclusion that the markets, possibly, feel less comfortably, being adjusted on consequences and lacks QE from ФРС.
Resistance of dollar. The dollar grows the third day successively in relation to euro. For the first time for two months we observe continuous three-day easing of uniform currency. The early wave of movement of dollar downwards which has repeatedly thrown EUR/USD to shock level 1,40, was developed again soon. Incessant concern from politicians concerning more active measures for prevention of growth of currency is observed: the yuan is consolidated after growth last week. The world Bank also has warned about bubble possibility in the market of actives in region, saying that «to officials. It is necessary to accept adequate safety measures not to repeat twice in one decade of the same errors.»

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