We’ve seen an undeniable shift in sentiment over the course of the month. Markets are now a lot more focused on the risk and implications of deflation, rather than looking for more QE from the ECB to support the Eurozone and provide a further boost to sentiment and stocks. Behind this, the dynamics operating on the dollar have also shifted, not least because short-term interest rates in the US have also plummeted and bought into question the efficacy of the Fed ending its tapering program this month and also put fresh uncertainty on the ability of the Fed to increase rates next year. What we have seen is also greater volatility in FX in general, but far less one-way traffic as dominated the majors in the third quarter. For this week, we’ve already seen a big push higher on Japanese stocks (up nearly 4%), related to further stories on the investment intentions of the main Japanese government pension fund. There has been plenty of speculation for most of this year on the impact of portfolio shifts, but for the most part this has more been speculation rather than action as the fund looks to take a less conservative approach. USDJPY has weakened overnight, but only modestly so. Elsewhere, GDP data from China will be key for risk sentiment and also the Aussie tomorrow. There is also inflation data in Australia in the middle of the week, together with the latest MPC minutes in the UK and Eurozone bank stress test results at the end of the week. Overall, greater volatility is likely to remain in place, with the downward correction of the dollar having run its course for now, but the well-worn story dollar strength on economic divergence is now looking more fragile, especially given the moves seen in market interest rates, the US 2 year bond yield having touched early March levels last week. Further reading: Start Of The USD Rebound? How To Position? – BNPP EUR/JPY: Targets Further Bullishness FxPro - Forex Broker FxPro - Forex Broker Forex Broker FxPro is an international Forex Broker. FxPro is an award-winning online broker, offering CFDs on forex, futures, indices, shares, spot metals and energies, serving clients in more than 150 countries worldwide. FxPro offers execution with no-dealing-desk intervention and maintains a client-centric business model that puts customer needs at the forefront of our operations. Our acquisition of leading spot FX aggregator, Quotix, enables us to offer access to a deep pool of liquidity, as well as top-class order-matching and some of the most competitive spreads in the market. FxPro is one of only few brokers offering Negative Balance Protection, ensuring that clients cannot lose more than their overall investment. FxPro UK Limited is authorised and regulated by the Financial Conduct Authority (registration number: 509956). FxPro Financial Services Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (licence number: 078/07) and by the South Africa Financial Services Board (authorisation number 45052). Risk Warning: Trading CFDs involves significant risk of loss. View All Post By FxPro - Forex Broker Daily Look share Read Next GBP/USD Technical analysis October 20-24 Natascha Sing 8 years We've seen an undeniable shift in sentiment over the course of the month. Markets are now a lot more focused on the risk and implications of deflation, rather than looking for more QE from the ECB to support the Eurozone and provide a further boost to sentiment and stocks. Behind this, the dynamics operating on the dollar have also shifted, not least because short-term interest rates in the US have also plummeted and bought into question the efficacy of the Fed ending its tapering program this month and also put fresh uncertainty on the ability of the Fed to increase… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.