Why such an extended move?
Here’s a comment from ‘Tucano’ in the … errr … comments:
EUR close to 1.31 now. Eamonn, how much of the move thru 1.30 can be attributed to thin liquidity?
A great comment.
My Twitter feed is going nuts with comments about how the move in EUR is ‘crazy’ etc.
OK, yeah, its a big move.
But, can I pose a few questions?
Q1. Where does the liquidity in FX come from? (Answer: From the Interbank market)
Q2. Have you looked at the clock?
Q2, part (2) Following on from the clock question, at this time of day, what are the active interbank FX markets? How big are they compared to London, for example?
Q3. Do you know how interbank players set prices? Do you know why they mark prices one way or another? They are not a charity.
If you are long EUR, GBP etc. – fantastic, well done.
If not, at least take this as a learning opportunity,