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Why is FX volatility so low this year?

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Liping Wang
3672
Liping Wang  
The lowest level in many years. Now eur/usd is lower than 60 pips a day. Why is that?
graziani
1994
graziani  

I was wondering if i was the only one who has noticed it.

You will never know why.

The only thing i know is that i have smaller profits.

Dua Yong Rew
5455
Dua Yong Rew  
graziani:

I was wondering if i was the only one who has noticed it.

You will never know why.

The only thing i know is that i have smaller profits.

me too 

Snelle Moda
610
Snelle Moda  

A possible explanation is:

The absence of a big crisis/event with influence the economy of the US or Eurozone.

The extreme low interest rate in both the US and the Eurozone and the prospect that the interest rate will remain low for a few more years. This eliminates the possibility for large institutions to trade in the major currencies to profit from large price movements which are usually caused by interest changes, so these institutions are not trading.

sylvain claverie
812
sylvain claverie  
snelle_moda :

Une explication possible intérêt:

L'absence d'Une grande Crise / Événement Avec influence de l'économique des Etats-Unis ou La zone euro.

Le rate Extrêmement Faible d'interest à la foie aux Etats-Unis et la zone euro et la perspective Que le rate d'interest resteront Faibles suspensions Encore QUELQUES Années. CELA Elimine la Possibilité versez Les Grandes institutions au commerce Dans Les Principales monnaies de Profiter de Grands mouvements de prix causées par Qui habituellement des changements d'intéret, Pas de Sorte Qué CES institutions ne SONT négociée de.

Strongly agree
Wagdy Abdelrahman
725
Wagdy Abdelrahman  

Due to low liquidity in FX market where the bulk of liquidity in the stock markets .
As soon as the stock market bubbles finish the invisitors will jump again over 3 markets (FX - Gold - Assets "Bonds & Realstate").

freecat
149
freecat  

However, I don't think there is any bubble in stock markets Elliot Trader.

Yes, most stock markets are at record high levels, however profit per share is much lower now than it was several years ago and there's a lot of capital flowing to this markets. So IMO, the bubble is only starting now. 

enbo lu
Moderator
1936
enbo lu  

Look at the stock market in China, it's one of the most bearish stock markets in the world for these years.

More and more chinese investors are trading in FX markets which is not legal in this country currently.

Muhammad Syamil Bin Abdullah
1069
Muhammad Syamil Bin Abdullah  
snelle_moda:

A possible explanation is:

The absence of a big crisis/event with influence the economy of the US or Eurozone.

The extreme low interest rate in both the US and the Eurozone and the prospect that the interest rate will remain low for a few more years. This eliminates the possibility for large institutions to trade in the major currencies to profit from large price movements which are usually caused by interest changes, so these institutions are not trading.

It could be one of the reason.
Diane Minshew
354
Diane Minshew  
matfx:
It could be one of the reason.

Energy Sector US 2017 Oil is on its way down. Railways, and New Infrastructure Projects being developed for the new main stream form of Energy. By 2020 Oil Consumption Almost cut in half. I was told major funds are slowly buying in so not to create suspicion.

All it really means is trending markets..

galafron
207
galafron  
Giving the prospect of rate policies in US EU Japan which is "stay as low as my competitor's" , it could only flatten further this year. Time to switch to other markets and for MT5 brokers to integrate more non-FX instruments in their platform if they are to retain their customers, actually a few do.
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