The Low to High ranges for this last week are at multi year lows for some currency pairs. Specifically:
- EURUSD: 131 pips, lowest range since July 20, 2007
- GBPUSD: 109 pips, lowest since March 29, 2002
- USDCHF: 103 pips, lowest since May 25, 2007
- NZDUSD: 97 pips, lowest since January 15, 2010
Looking at average week range over the last 12 weeks, the EURUSD range of 131 pips was well below the 12 week average range of 254 pips. The GBPUSD was worse at 109 pips vs 247 pip average. The pairs that moved the most this week? The two pairs which reversed recent trends. The USDJPY outdid it’s average range, 142 vs 121 pips and EURAUD which had a 231 pips range versus an average of 213 pips.
The lack of volatility in the market this week, gets me ready for an oversized move in the future. Will it be next week? There is not a lot going on as the world continues to vacation (isn’t there work to be done?) So one would not expect it. However, the levels are being developed in the back and forth action, so I will continue to be aware and prepared.
Highlights for next week include:
Monday: Australia Monetary Policy Minutes
Wednesday: Canada Retail Sales, US Exisiting Home Sales, US FOMC Meeting Minutes, HSBC Flash Manufacturing PMI for China
Thursday: German Flash PMI, US New Home Sales
Friday: UK Revised GDP, US Durable Goods
