<p class=“MsoNormal“>Are you trying to keep up with the
constantly fluctuating markets? You’re not alone. 2022 has been extremely
volatile and full of surprises for the financial markets due to the unpredictability
of economic and political events. </p><p class=“MsoNormal“>Whether you’re a beginner or a more
experienced trader, you’re probably struggling with making trading decisions as
you fear you might make the wrong move.</p><p class=“MsoNormal“>This article will give you a better
understanding of what happens during volatile market periods and what you can
do to boost your trading strategies. Keep reading to find out more!</p><p class=“MsoNormal“>What
is market volatility?</p><p class=“MsoNormal“>It’s a common misconception that
volatility is only about prices falling rapidly, when in reality it has to do
with any sudden price movement, including an unexpected rise in prices. In
simple terms, an indicator of market volatility is the frequency and magnitude
of price movements, whether upward or downward. Therefore, market volatility
increases when price swings are larger and more frequent.</p><p class=“MsoNormal“>It’s helpful to keep in mind that
volatility is a normal part of the cycle of online trading. In this way, you
can be more prepared to take control of your trading positions.</p><p class=“MsoNormal“>What
causes volatility in the markets</p><p class=“MsoNormal“>Volatility is often a result of
economic factors, such as financial news, interest rate changes, and fiscal
policy. More recently, a leading factor has been political developments. As
volatility reflects investor sentiment, any factor influencing investor behavior
will influence market volatility. Markets are typically considered volatile if
they rise or fall more than 1% over a long period of time. </p><p class=“MsoNormal“>The
current state of the markets</p><p class=“MsoNormal“>2022 has been full of ups and downs for
<a target=“_blank“ href=“https://ellandroadcapital.com/product-specifications/“ target=“_blank“>CFDs in every asset class</a>, including
stocks, forex, and crypto futures. Major economic and political events have
shaped the market sphere throughout the year. Increasing inflation, recession
fears, and the Russia-Ukraine conflict are some of the main aspects that have
influenced traders’ sentiment and their trading decisions. Let’s take a look at
some of the most prominent examples of market volatility this year:</p><p class=“MsoNormal“>Forex: Some of the most powerful currencies, such as the EUR, JPY,
and GBP, experienced record-breaking lows, while on the other hand, the USD has
managed to push through the turbulent global economies and is expected to go
even higher by the end of the year.</p><p class=“MsoNormal“>Stocks and Indices: The S&P 500 witnessed one of its worst
performances in decades, reflecting a bearish market sentiment.</p><p class=“MsoNormal“>Cryptocurrency: The crypto
market is facing one of its most challenging years as the uncertainty of the
economic outlook has made traders turn to safe havens rather than
cryptocurrencies. For example, Bitcoin dropped by 56% during the Q2 of 2022 and
is still struggling to remain above average levels.</p><p class=“MsoNormal“>The
bottom line</p><p class=“MsoNormal“>An essential trader trait is being
aware that online trading entails high risk as there are many factors that can
impact the markets and affect your trading positions.</p><p class=“MsoNormal“>What can you do to be more prepared?
Staying up to date with economic events is always a good idea so you can be in
a better position to understand what is happening in the markets, while also practicing
and adapting your trading strategies so you can be able to respond to any
market condition. <a target=“_blank“ href=“https://portal.ellandroadcapital.com/login“ target=“_blank“>Log in to your Elland Road trading account</a> to explore
the volatile markets.</p><p class=“MsoNormal“>Risk
Warning: Contracts for Difference (‘CFDs’) are complex financial products, with
speculative character, the trading of which involves significant risks of loss
of capital. </p><p class=“MsoNormal“>Disclaimer:
This
material is considered a marketing communication and does not contain and
should not be construed as containing investing advice or a recommendation, or
an offer of or solicitation for any transactions in financial instruments or a
guarantee or a prediction of future performance. Past performance is not a guarantee
of or prediction of future performance.</p>

This article was written by ForexLive at forexlive.com.

<p style=““ class=“text-align-justify“>This relates to the earlier report <a target=“_blank“ href=“https://www.forexlive.com/centralbank/boe-reportedly-to-further-delay-qt-to-ensure-gilts-market-stability-20221018/“ target=“_blank“>here</a>. I think it would depend on what exactly they will define as being ‚inaccurate‘ but the pound did retreat a little on the news to a low of 1.1286 before keeping back around 1.1315 now – down 0.3% on the day.</p><p style=““ class=“text-align-justify“>There was also a brief jump in gilt yields, with 30-year yields moving up to 4.48% before keeping around 4.42% now – up 5 bps on the day.</p><p style=““ class=“text-align-justify“>Delaying QT is surely the right approach considering the recent fiasco and the damage to <a target=“_blank“ href=“https://www.forexlive.com/terms/l/liquidity/“ target=“_blank“ id=“633aaf0b-b4a1-40c5-8fbe-bf158af520a1_1″ class=“terms__main-term“>liquidity</a> in gilts. As such, trying to portray otherwise is a bit of a head scratcher. Mind you, 30-year yields are still some 92 bps higher than before the mini-budget announcement by Truss and Kwarteng last month.</p>

This article was written by Justin Low at forexlive.com.

<ul><li>Prior -60.5</li><li>Economic sentiment -59.2 vs -65.7 expected</li><li>Prior -61.9</li></ul><p>The economic situation has worsened again compared to the previous month, with ZEW noting that the probability that real GDP will decline in the course of the next six months has also increased considerably.</p>

This article was written by Justin Low at forexlive.com.

<p>Headlines:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-finance-minister-hunt-we-will-reverse-almost-all-tax-measures-announced-on-23-sept-20221017/“>UK finance minister Hunt: We will reverse almost all tax measures announced in growth plan</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/the-pillars-of-truss-have-fallen-20221017/“>The pillars of Truss have fallen</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/china-says-will-delay-release-of-q3-economic-indicators-including-tomorrows-gdp-20221017/“>China says will delay release of Q3 economic indicators, including tomorrow’s GDP</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/whats-behind-the-sudden-plunge-in-snb-sight-deposits-20221017/“>What’s behind the sudden plunge in SNB sight deposits?</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/snb-total-sight-deposits-we-14-october-chf-6198-bn-vs-chf-6393-bn-prior-20221017/“>SNB total sight deposits w.e. 14 October CHF 619.8 bn vs CHF 639.3 bn prior</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/china-state-banks-seen-acting-in-swaps-market-to-try-and-stabilise-the-yuan-currency-20221017/“>China state banks seen acting in swaps market to try and stabilise the yuan currency</a></li></ul><p>Markets:</p><ul><li>GBP leads, JPY lags on the day</li><li>European equities higher; S&P 500 futures up 1.2%</li><li>US 10-year yields down 5.3 bps to 3.953%</li><li>Gold up 1.0% to $1,657.63</li><li>WTI crude up 0.1% to $85.63</li><li>Bitcoin up 1.5% to $19,463</li></ul><p style=““ class=“text-align-justify“>The day started with a gap higher in the pound as traders hoped for a turn in the fiscal path to be set out by newly appointed UK finance minister, Jeremy Hunt. An emergency statement was then called and Hunt delivered by ripping apart the mini-budget that was announced on 23 September.</p><p style=““ class=“text-align-justify“>UK bonds and the pound rallied going into the statement and largely held their ground in the aftermath. 30-year gilt yields are down 42 bps to 4.36% while GBP/USD had a kneejerk jump from 1.1280 to 1.1330 before falling back to 1.1250 and is now back up to 1.1290-00 levels.</p><p style=““ class=“text-align-justify“>The better mood in cable is also helped by a softer dollar overall, as equities are taking comfort amid a bid in bonds as well today. US futures are up over 1% and that is feeding into better sentiment in broader markets and among major currencies.</p><p style=““ class=“text-align-justify“>EUR/USD is up 0.2% to 0.9740 but off earlier highs of 0.9770. Meanwhile, USD/CAD is down 0.5% to near 1.3800 and AUD/USD is up 0.8% to 0.6245 but off its earlier high of 0.6265 during the session. USD/JPY is a notable exception as the yen stays under pressure, with the pair now up 0.1% to 148.85 – holding near fresh highs since 1990.</p><p style=““ class=“text-align-justify“>It looks like we’re in for a calmer start to the week but all of this is <a target=“_blank“ href=“https://www.forexlive.com/news/counting-down-to-the-central-bank-bonanza-20221017/“ target=“_blank“>right before we get to the central bank bonanza</a> in the next two weeks, so perhaps it is just the calm before the storm.</p>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>The pair was holding around 1.1280 before Hunt’s statement came and right after, it pushed to a high of 1.1330. That came as the dollar also softened as risk trades extended gains but now we’re seeing a bit of a pullback in cable to 1.1270-80 levels again. One can argue that we already saw the bullish price action come into play at the start of the day but even so, the reaction here is rather tepid in my view.</p><p style=““ class=“text-align-justify“>So, what is next for the pound in this instance?</p><p style=““ class=“text-align-justify“>I think the main takeaway is that this whole political and finance crisis related to Trussnomics can be put to bed at least. That could see gilt yields pull back further but at the same time, it also means that the BOE is likely not needed to overextend and to do more by acting aggressively in order to address whatever policy missteps there might have been from the government.</p><p style=““ class=“text-align-justify“>The fact that Hunt also announced that the energy price cap will only last until April next year is a testament to that, in the sense that the government is now working more in line with the central bank.</p><p style=““ class=“text-align-justify“>However, when you look at where this puts us, it is basically a reset to September. What does that mean? It means that we are still looking at a position where the UK economy is still struggling to deal with high inflation, the cost-of-living crisis, an energy crunch and a pending recession that could last for up to a year.</p><p style=““ class=“text-align-justify“>That’s not exactly a pretty picture now, is it?</p><p style=““ class=“text-align-justify“>And when you consider that against the backdrop of a Fed that is still aggressively tightening and not letting up in terms of putting the pedal to the metal, the path of least resistance still seems for a move lower in cable.</p><p style=““ class=“text-align-justify“>In the bigger picture, we already got that corrective bounce from 1.04 to 1.15 in the past few weeks and so there is appetite for sellers to come back into the fray. All there is now is to watch for equities sentiment (indirectly dollar sentiment) as we look towards the central bank bonanza in the coming two weeks.</p><p style=““ class=“text-align-justify“>If there is a material breakdown to the levels pointed out <a target=“_blank“ href=“https://www.forexlive.com/news/us-futures-higher-but-key-technicals-are-being-questioned-20221017/“ target=“_blank“>here</a>, expect another rush into dollars and broader markets to sell off again as it has done over the past few months.</p>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>And Jeremy Hunt has just announced that all of said tax cuts in the so-called „growth plan“ is now abandoned. So, now what?</p><p style=““ class=“text-align-justify“>If you look at things, it really has been an extraordinary couple of weeks in the UK. What exactly was the purpose of this whole exercise then? There is no backing to the narrative that Truss is pushing a „growth plan“ as whatever policy that is now going to take shape is essentially the same thing as it would have been with Johnson and Sunak in their previous positions.</p><p style=““ class=“text-align-justify“>It’s a real mess politically now and there is essentially no hiding place for Truss. It will be hard to see how she can survive such a blow in confidence and credibility.</p><p style=““ class=“text-align-justify“>In any case, markets will be happy with Hunt’s announcement and the biggest winners? The Bank of England, of course.</p>

This article was written by Justin Low at forexlive.com.

<ul><li>Basic rate of income tax will remain at 20% indefinitely</li><li>It is not right to borrow in order to fund tax cuts</li><li>Energy price guarantee will not change until April, thereafter will be targeted</li><li>Will no longer be proceeding with cuts to dividend tax rates</li><li>No longer proceeding with new VAT-free shopping scheme for non-UK visitors</li></ul><p style=““ class=“text-align-justify“>One wonders what was the whole point of the exercise over the past few weeks then. So, pretty much everything that was announced previously will be gone and only the National Insurance and stamp duty cut will stay. The income tax hold even walks back on Sunak’s commitment (he planned to cut it at a later date). So, essentially a total reversal of the entire „growth plan“ that was announced at the end of last month.</p><p>/<a target=“_blank“ href=“https://www.forexlive.com/terms/g/gbp/“ target=“_blank“ id=“3a5ab7c1-ff09-45ea-87d4-eea6613bb754_1″ class=“terms__main-term“>GBP</a></p>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>30-year gilt yields are down 39 bps to 4.39% on the day as we wait to hear from UK finance minster, Jeremy Hunt, and his emergency statement.</p><p style=““ class=“text-align-justify“>The expectation is that we will see a massive U-turn in the mini-budget but the latest word on the street is suggesting that he will also announce that the energy price guarantee will only remain universal until April next year. Thereafter, the policy will become targeted and capped. This was something the BOE feared would add to <a target=“_blank“ href=“https://www.forexlive.com/terms/i/inflation/“ target=“_blank“ id=“ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa_1″ class=“terms__main-term“>inflation</a> pressures, so it is likely that we are seeing the government work more closely with the central bank after the weekend meeting.</p><blockquote class=“twitter-tweet“ data-partner=“tweetdeck“><p lang=“en“ dir=“ltr“>BREAKING:Jeremy Hunt is poised to announce that the energy price guarantee will only remain universal *until April*It will then become targeted and cappedGovt helped by falling gas prices<a target=“_blank“ href=“https://twitter.com/MrHarryCole?ref_src=twsrc%5Etfw“>@MrHarryCole</a> first highlighted changes this morning</p>— Steven Swinford (@Steven_Swinford) <a target=“_blank“ href=“https://twitter.com/Steven_Swinford/status/1581945801479446528?ref_src=twsrc%5Etfw“>October 17, 2022</a></blockquote><p>Let’s see if we are going to get another round of buy the rumour, sell the fact play in gilts.</p>

This article was written by Justin Low at forexlive.com.

<p>The BoE is due to announce its next decision on interest rates on November 3. Governor Bailey was speaking at an International Monetary Fund event in Washington. </p><ul><li>“As things stand today, my best guess is that inflationary pressures will require a stronger response than we perhaps thought in August”</li></ul><p>The previous hike was on September 22:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/boe-raises-bank-rate-by-50-bps-to-225-as-expected-20220922/“ target=“_blank“>BOE raises bank rate by 50 bps to 2.25%, as expected</a></li></ul><p>Bailey’s comments on a ’stronger response‘ brings a 75bp rate hike into play for the November meeting, perhaps even 100bp. </p><p><a target=“_blank“ href=“https://www.forexlive.com/terms/g/gbp/“ target=“_blank“ id=“3a5ab7c1-ff09-45ea-87d4-eea6613bb754_1″ class=“terms__main-term“>GBP</a> should get a boost in Monday morning trade. GBP has been very much the volatile beast in recent weeks in response to the fiscal announcements from the the new administration. Chancellor Kwarteng has since been fired. The noob Chancellor now is Jeremy Hunt. </p><p><a target=“_blank“ href=“https://www.forexlive.com/terms/b/bank-of-england/“ target=“_blank“ id=“c7b1a473-1b6d-47aa-acc3-15e65e973eb0_1″ class=“terms__secondary-term“>Bank of England</a> Governor Bailey:</p>

This article was written by Eamonn Sheridan at forexlive.com.

<p>What is the bias?</p><p>What is the risk?</p><p>What are the targets?</p><p>All of those help determine the „why“ for your trades including getting in and getting out. </p><p>The first part of the video is a traders lesson.</p><p>The second part of the video starting at 9:37, goes through the major currency pairs vs the USD and outlines the bias, risks and targets for each. </p><ul><li>Lesson in trading focused on bias, risk, targets, and the why in your trading. </li><li>EURUSD 9:40</li><li>USDJPY 12:45</li><li>GBPUSD 16:16</li><li>USDCHF 18:24</li><li>USDCAD 21:04</li><li>AUDUSD 23:10</li><li>NZDUSD 24:52</li></ul>

This article was written by Greg Michalowski at forexlive.com.