Market Volatility and Liquidity in 2017

The new U.S. administration has begun to pursue an executive order of reducing financial regulations including Dodd-Frank Wall Street Reform and Consumer Protection Act. What would happen if Dodd-Frank gets reformed?

The U.S. banks have been diversifying the financial risk and restricted from making speculative investment because of Dodd-Frank law. The banks now might be taking more risk and allowing uncertainty in investment decisions. Uncertainty and anxiety will make market volatility. Corporates tend to avoid volatility and will seek out for trading options. How about FX trading?

Dodd-Frank-law
President Obama Signs the Dodd-Frank Wall Street Reform and Consumer Protection Act. July 21, 2010.

Is Peso to be underrated by the U.S. manufacturers taking back the jobs? Is Renminbi to be appreciated after the U.S. government withdrawing from TPP?

Traders’ focus is now on the rate of U.S. domestic economic growth assisted by less regulation. Therefore, tremendous expectation goes to the future U.S. policies. At a result, more volatility is expected in FX market. How can you be prepared as a trader in 2017?

In volatile market, it is vital for traders to ensure market liquidity. Liquidity isn’t produced by technology but by connectivity among liquidity providers. Poor infrastructure could result in lack of liquidity and cause price gaps. That’s why Tradeview has connected with over 50 different banks and prime liquidity providers to offer traders a latency driven infrastructure and competitive pricing.

Market Volatility and Liquidity in 2017

Kengo Yamada
Account Manager
kyamada@tvmarkets.com