Although currency traders returned from the Hamptons and St. Tropez, the market in September acted like it was still on vacation as major pairs traced out miniscule ranges and volatility dropped to near record lows. Neither dollar nor euro bulls could make much headway as positive and negative news essentially cancelled each other out. No one knows how long this quiet trading may last, but in markets one truth holds firm trend always follows range. The problem for most traders in FX however is that the direction of the trend in EUR/USD can go either way, which in turn makes trading at the present time particularly treacherous.
Al Bawaba
