The most volatile forex pairs in the forex market today are GBPUSD and EURGBP. Check out the most interesting buying and selling opportunities right now!
Have a look at CHFJPY which is bullish and GBPCHF which is bearish right now!
After a slow Thanksgiving weekend, we will be getting a lot of data this week.
What to look for in the market right now:
Upcoming events on the Economic calendar
- FOMC Member Williams Speech (Friday, USD)
- Employment Change (Friday CAD)
- Nonfarm Payrolls (Friday, USD)
- GDP Growth Rate QoQ (Q3) (CAD)
- From a trading and investing standpoint, the basic rule of thumb regarding the marketplace of financial securities is simple: Traders and investors do not appreciate looming uncertainty. The U.S. presidential elections provide a voracious debate upon the direction of the country, and more importantly, provide uncertainty unto the marketplace.
- The U.S. dollar’s long-term value is dependent upon many different factors, and the election year may just provide a few obstacles in the road rather than a complete change of course.
- Expect slow market for the rest of the week due to thanksgiving celebration in the US
The Forex Price Surprises page lists the most volatile forex contracts, ranked by standard deviation, compared to their past 20-days of data. The page is re-ranked every 10 minutes, and new contracts may be added to or removed from the bullish and bearish tables based on newly calculated data.
A Bullish trend is one where there is an upward trend or rising direction in the market. Contracts listed on the Bullish Trends table are those whose standard deviation has risen over the specified time period.
A Bearish trend is one where there is a downward trend or falling direction in the market. Contracts listed on the Bearish Trends table are those whose standard deviation has fallen over the specified time period.
The Chart View displays a graph showing Bullish Momentum as green bars (higher standard deviation), followed by Bearish Momentum as red bars (lowest standard deviation).
About Standard Deviation
Price movement on the Price Surprises page is defined in terms of the number standard deviations a contract has moved in the latest trading session. Defining price movement in terms of standard deviations is preferable to using percentage change because using standard deviations puts all the forex contracts on a level playing field. There are categories of currencies that are typically more volatile and have larger percentage price changes than others. If we used percentage change to define price movement, then high-volatility forex contracts would always dominate the Price Surprises list and we would miss lower-volatility forex contracts that might have an unusually large movement on a particular day.
In order to calculate the number of standard deviations that a contract moves in the latest session, we use the following formula:
Today’s price movement in terms of number of 20-day standard deviations = ln (latest close/previous close) / ((20-day historical volatility/100)/square root of 252))
The movement of a forex contract in terms of its standard deviation is also useful to traders because it can be translated into probability terms. According to the normal distribution bell curve, a forex contract will show a move of less than one standard deviation (plus or minus) about two-thirds of the time, a move of less than two standard deviations 95% of the time, and a move of less than three standard deviations 99% of the time. Thus, if a trader sees a forex contract that has moved 3 standard deviations, the odds of that event are only 1% (or 1 in 100), meaning that contract is showing a major move from a statistical standpoint that is outside the realm of normal statistical expectation.
We provide these charts daily, and let you know the latest trends in the forex market today. Check out updated charts on Barchart.com.
Are there any news that can have an impact on the live market today? Check out our economic calendar here.
Our Forex Heat Map will completely change your perception of the market. You’ll understand how and why specific currency pairs move. You will have no problems recognizing the strong and weak currency, so that you can open only those transactions with high probability of success.
Disclaimer: Forexandprofits.com would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures), cryptocurrencies, and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes.
Therefore Forexandprofits.com doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.
Forexandprofits.com or anyone involved with this website will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.