The euro was on the verge of setting fresh 31-month lows against the US dollar on a plunge in the Dow Jones Industrials Average and other key stock indices, but an amazingly quick recovery in risk sentiment pushed the US dollar and Japanese yen lower across the board.

Volatility is extraordinarily high, not only in the currency market, but across all asset classes.  However, for the past four weeks, price action has come without trend and in some cases it has consolidated into tight ranges.  Something will have to give soon, and considering the fundamental environment, it will likely be congestion trends.

The Swiss National Bank surprised markets with a 100 bps reduction in its benchmark interest rate as the economic growth outlook for the country worsened.  The export driven economy saw demand for its goods fall 4.6% in September and with the credit crisis reaching heightened levels in October global demand is expected to fall further.

The US dollar was not able to make a successful break higher on Friday, as a look at the trade-weighted US dollar index (DXY) shows solid resistance at 88.35.

Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for November 21.

If you come to the conclusion that implied volatilities are going to come down over the next few months and into 2009, how can a trader benefit from this?

Every single day we have more reason to believe that the US unemployment rate will break 8 percent next year.

A few months ago, working on Wall Street was about the most prestigious thing you could do.

The trade-weighted US Dollar Index (DXY) closed above key resistance at 88 for the first time since 2006.

Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for November 20.