The Daily Forex Brief is written by FxPro's team in the City of London.
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Daily Forex Brief London: Thursday 16th July 2012 A dangerous calm A pause can be refreshing, but after a while sustained inaction can become downright dangerous. The reflexes slow, the mind numbed by a somnolescence that inhibits proper decision-making. Currency markets in particular, and assets markets more generally, fit this depiction at the present time, but before too long this contented acquiescence will likely morph into something more in tune with the increasingly problematic risks that are gathering in the financial skies around us. Confirmation of this complacency can be found in the VIX index, which fell to a 6yr low on Monday. Unfortunately, very low VIX readings invariably signal a sell-off in risk assets. As is so often the case, identifying the trigger for a reassessment of risk is not a simple task. There are the known issues, such as Europe's sovereign debt train-wreck and America's approaching fiscal cliff. In addition, there are the growing tensions in the Middle East, in particular the more hawkish language being used by Israeli politicians towards the nuclear threat posed by Iran. According to the Haaretz newspaper, senior members of the Netanyahu administration are prepared to bomb Iran before the American Presidential election in November. Also, an increasing number of citizens have been purchasing gas masks in Jerusalem over recent days. Nearby, the Syrian administration is clearly unravelling, providing a fresh source of political instability for the region. As is so often the case, September promises to be an interesting, and potentially volatile, month.
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Visit fxpro.co.uk for more news, FX commentaries, FxPro TV, real-time feeds, calculators and tools.
Daily Forex Brief London: Thursday 16th July 2012 A dangerous calm A pause can be refreshing, but after a while sustained inaction can become downright dangerous. The reflexes slow, the mind numbed by a somnolescence that inhibits proper decision-making. Currency markets in particular, and assets markets more generally, fit this depiction at the present time, but before too long this contented acquiescence will likely morph into something more in tune with the increasingly problematic risks that are gathering in the financial skies around us. Confirmation of this complacency can be found in the VIX index, which fell to a 6yr low on Monday. Unfortunately, very low VIX readings invariably signal a sell-off in risk assets. As is so often the case, identifying the trigger for a reassessment of risk is not a simple task. There are the known issues, such as Europe's sovereign debt train-wreck and America's approaching fiscal cliff. In addition, there are the growing tensions in the Middle East, in particular the more hawkish language being used by Israeli politicians towards the nuclear threat posed by Iran. According to the Haaretz newspaper, senior members of the Netanyahu administration are prepared to bomb Iran before the American Presidential election in November. Also, an increasing number of citizens have been purchasing gas masks in Jerusalem over recent days. Nearby, the Syrian administration is clearly unravelling, providing a fresh source of political instability for the region. As is so often the case, September promises to be an interesting, and potentially volatile, month.
http://webr.emv2.com/fxpro/fxpro-newDB.gifhttp://webr.emv2.com/fxpro/daily-briefDB.gifhttp://webr.emv2.com/fxpro/marketnewsDB.gifhttp://www.fxpro.com/sites/default/f...rf%2024h_0.png