Why the low volatility of EUR/USD in 2007? | Forex Factory

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Why the low volatility of EUR/USD in 2007?

  • #1
  • First Post: Feb 16, 2009 1:48pm Feb 16, 2009 1:48pm
Hi guys,

whenever I look at the EUR/USD chart from 1.1.2007 to 31.12.2007, it makes me almost sick. How on earth was there money to be made in such a low volatility market? The average daily volatility was ~ 50 pips.

I am getting quite spoiled by this market because the EUR/USD is now pretty volatile and yet, the spreads are sooo low, that it almost doesn't matter.

Does anyone know why was 2007 such a quite year for this currency cross? Never before had EUR/USD such a low daily range and I hope that it will never again.

An alternative would be to start trading GBP/USD, but the spreads are quite big and who knows... Maybe the United Kingdom chooses to adapt EUR some day.

Damn, this low volatile days make me question everything! This sh*tty unstable world of forex could make me mad! =)
  • #2
  • Feb 16, 2009 1:58pm Feb 16, 2009 1:58pm
If you want good volatility and low spreads, consider EUR/JPY. Best times to trade are during session overlaps.
  • #3
  • Feb 16, 2009 2:08pm Feb 16, 2009 2:08pm
Quoting hendrix
Hi guys,

whenever I look at the EUR/USD chart from 1.1.2007 to 31.12.2007, it makes me almost sick. How on earth was there money to be made in such a low volatility market? The average daily volatility was ~ 50 pips.

I am getting quite spoiled by this market because the EUR/USD is now pretty volatile and yet, the spreads are sooo low, that it almost doesn't matter.

Does anyone know why was 2007 such a quite year for this currency cross? Never before had EUR/USD such a low daily range and I hope that it will never again.

An alternative would...

that 50 pip range in eu is historically VERY normal . You must be a new trader.

The fx markets and market volatility overall has only got out of whack since July of last year and will not last for ever.

I trade GJ (day trader / scalper) as its historical range is 150 pips per session and I only have 4 pips spread.

what is unusual is not the volatility in 2007 , but the volatility now ... enjoy it while it lasts
Blogging daily now at www.volume.zone
  • #4
  • Feb 16, 2009 3:13pm Feb 16, 2009 3:13pm
Well, I just had a hard thought about it and what the hell - I'll just adapt. I'll lower my stop losses and my profit targets and that will solve the problem. If low volatility is useful for anything, then it is for making S&R lines to work like magic.

Oh, I'm not that new - I'll soon have my 1st forex trading anniversary. The problem is, that I enjoy it so much, that I never want it to change!!!
  • #5
  • Feb 16, 2009 5:34pm Feb 16, 2009 5:34pm
1 year is still VERY new, in fact you could say your still crappin green....
Same Whore .... Different Dress
  • #6
  • Feb 16, 2009 5:47pm Feb 16, 2009 5:47pm
volatility was low from the Euro's inception (1999) until Lehman brothers collapsed.... at which point 6% of the FX market place disappeared.
  • #7
  • Feb 16, 2009 6:04pm Feb 16, 2009 6:04pm
Quoting johnedoe
1 year is still VERY new, in fact you could say your still crappin green....
lol
Blogging daily now at www.volume.zone
  • #8
  • Feb 16, 2009 6:06pm Feb 16, 2009 6:06pm
Quoting hendrix
Well, I just had a hard thought about it and what the hell - I'll just adapt. I'll lower my stop losses and my profit targets and that will solve the problem. If low volatility is useful for anything, then it is for making S&R lines to work like magic.

Oh, I'm not that new - I'll soon have my 1st forex trading anniversary. The problem is, that I enjoy it so much, that I never want it to change!!!

1 year is new ..

I have been traidng 6 .. still learning something every day .

Last week in a ranging day gj went into 100 pip range ..... 5 times it went top to bottom of channel ..... I dream if more days like that . i felt like I was in the twilight zone.
Blogging daily now at www.volume.zone
  • #9
  • Feb 17, 2009 2:48am Feb 17, 2009 2:48am
Quoting malcolmb14
1 year is new ..

I have been traidng 6 .. still learning something every day .

Last week in a ranging day gj went into 100 pip range ..... 5 times it went top to bottom of channel ..... I dream if more days like that . i felt like I was in the twilight zone.
Yeah, that seems to be the "problem" - the learning never stops. Well, I guess that's part of the fun.
  • #10
  • Last Post: Feb 17, 2009 3:47am Feb 17, 2009 3:47am
Yeah...this shit is tough and sometimes relay frustrating.I have been trading for 4 years and still don't live off trading. January i made 50% on my account and then made a stupid mistake and watched all my profits disapear in one day. When will i learn??? Dont mind me...just putting out my frustration where i know people will understand me .

Hendrix i see you are from Slovenia,me to..where are you from?
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