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How to Use The Fed Implied Volatiltiy Survey |
Forex Portfolio Management
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Want to know what institutional investors think about the major currencies expected volatility? There is a great indicator released on the last trading day of the month by the New York Fed. It is the implied volatility survey and ranks each of the major currencies by their average implied volatility for at the money options. That is useful because you can identify currencies that may work well in a neutral volatility play or identify those that have the highest probability for a breakout in the near term. In today's video I will illustrate the report and talk about some of the conclusions you could draw from the information contained inside. Best of all, this report and much more is available to you and can even be delivered by the Fed to your inbox on a daily basis.
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