Thursday, June 30, 2011

Quarter End and Forex

Usually 2nd quarter end (not to be confused with QE2, separate post on this later) creates wacky moves in forex market due to money flows between major central and corporate banks. Traders are not amused but alert, especially if they have positions on. All dollar majors are involved for sure. With exception of GBP, CHF, and JPY, dollar is very weak across the board today. I think that higher US yields are propping the buck against swissy ("CHF" swiss franc) and yen (JPY), and the cable (funny name for "GBP" Great British Pound, aka Sterling) is weak due to massive strike by UK unions.
Other than that, traders are sitting back and relaxing at times like these. Havoc, confusion, and unexplainable sharp moves one way or the other are to be expected. After all, 4 trillion dollars are sloshing in the tub daily, some will spill over...

C8G9HJYM2AF8

No comments:

Post a Comment