Euro volatility hits 21 year low!

The attached chart shows that the 14 week Average true range (ATR) for the euro is at the lowest it has been for the past 21 years. Such low volatility means that trading ranges have contracted dramatically, and there are few opportunities to make money with daily movements so low. As volatility is somewhat cyclical, we expect that volatility will increase in the near future, and much more dramatic moves can be expected. Traders welcome this, because without movement there is no profit! the big question is whether dollar weakness (and hence euro strength) will continue. With the dollar once again at record lows, it is no wonder that these questions are being asked. And that is the reas on why volatility has dried up!