Potentially higher euro rates volatility from "extremely low" levels at present and higher yields prompts RBC Capital Markets to recommend so-called payer swaptions: options to enter a swap and pay the fixed leg while receiving floating rates. Option premiums are cheap when volatility is low, as the underlying asset is less likely to move to in-the-money territory. And higher rates are beneficial for those paying fixed rate to receive floating
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
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