ECB Reawakens FX Volatility as Lower Negative Deposit Rates Discussed

As the European trading desks near the close of today's trading, certain dealers are feeling the pinch from what could be a very important press conference delivered by European Central Bank (ECB) executives in Malta. While leaving rates unchanged, the Governing Council of the ECB has committed to use all the tools at its disposal to reawaken inflation rates in the Eurozone.

ECB President Mario Draghi has highlighted the resilience of the EUR/USD Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term rate, revealing a preference on the governing council of the ECB for the depreciation of the single currency to continue. While he has implicitly stated that the exchange rate of the euro is not a policy objective, the negative inflation rates in Europe persist.

The EUR/USD has fallen over 150 pips in the aftermath of the comments from the President of the ECB and the rate has still not stabilized. With October being a sluggish month for the most part the development is welcome news for retail FX brokers.

Just days before the Finance Magnates' London Summit is to discuss the alternatives for retail FX brokers in slow markets. The best thing that could happen is for foreign exchange Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term to return in full force so as to give the companies time to adjust to a new retail investor; a retail investor interested in multi-asset trading.

At the panel titled "Multi-Asset Trading - The Next Frontier" a number of key executives in the industry leading different types of efforts into the multi-asset space will gather to exchange ideas.

In the meantime, Mario Draghi will continue to exercise "vigilance" as he confirmed the words of his predecessor at the helm of the ECB, Jean-Claude Trichet.