** The event-driven volatility from the Pound and Aussie dollar is supporting larger trends
** Top fundamental catalyst Friday is a potential Euro spark from the Eurozone 4Q GDP data
** Risk trends remain the top concern as the market weighs the scales between continuation and reversal
The markets continue to drive dominant fundamental trends in risk appetite and interest rate expectations to the benefit of the Pound, Yen cross bulls and S&P 500. Maintaining trend, however, is coming at the cost of volatility and momentum. This maintains an unwanted sense of tension on the markets - and opportunity for the dollar - the threat of a dramatic plunge always remains close at hand. We may find another surge in short-term, data-derived activity in the coming session with the high profile release of the 4Q European GDP figures. Given EURUSD's range between 1.3700 and 1.3500 along with the tense technical patterns of the other Euro-based crosses, this traditionally restrained release may be able to leverage a bigger market reaction. We discuss coming event risk and broader risk trends in today's Trading Video.