Market volatility in advance of G20 meeting

Market volatility in advance of G20 meeting.

18 October 09:33 AM

If an option trader wants to be a professional, first of all before starting another trading session he/she should check the potential volatility. In order to do that it is necessary to have a good command of fundamental analysis, or at least to be able to analyze macroeconomic indicators. So, what to expect from the market this week?

Oct 18th, 2010 (GMT)
14:00 USD - ТICS (Тreasury Intеrnational Capital System). TIC Long-Term Purchases.

Oct 19th, 2010 (GMT)
12:30 USD - Building Permits
18:50 GBP - BOE Gov King Speaks

Oct 20th, 2010 (GMT)
08:30 GBP - МPC Мeeting Мinutes
08:30 GBP - Public Sector Net Borrowing

Oct 21st, 2010 (GMT)
08:30 GBP - Retail Sales
Tentative GBP - Inflation Report Hearings
09:15 GBP - МPC Мember Posen Speaks
12:30 USD - Unemplоyment Сlaims
14:00 USD - Philly Fed Manufacturing Index

Oct 22nd -23rd, 2010
G20 Meetings



This week fairly significant macroeconomic data are expected to be released. Yet, this week’s most important event is the G20 finance ministers meeting. The global currency market shows nervousness in advance of the meeting. Japan, which in September made the first direct market intervention in the last 6 years, has decided to warn South Korea and China of being determined to take serious steps. The G20 meetings are always held behind closed doors. Yet the officials usually inform the press about the current situation. In spite of the fact that G20 is not an institution, nevertheless it has a top-level impact on the formation of global political line, influencing the currency market. So any information on the G20 meetings should be considered thoroughly whether you monitor GBP, USD or any other currency.
After last week’s IMF meetings on the problems of currency exchange the G20 meetings are expected to continue disputes over the problems of the global economic relations.
Special attention should be paid to the МPC Мeeting Мinutes released at 8.30 GMT on Oct 20th as Andrew Sentence was the only one voting for stimulating the economy through raising the interest rates. Should the amount of the “FOR” voters increase, it will be an encouraging sign for the British economy.
Last week’s historical volatility is 208 pts down and 350 pts up. The max range is 350 pts.

Text: The Department of Options, Masterforex-V Academy.
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