EUR crosses/EUR/USD/FXWW News

EUR liquidity- a taste of things to come

Liquidity was understandably poor this morning, as it always is on a Monday morning, but I think we can start getting used to these nasty gaps. There will be many more comments on Greece EU membership, EZ QE etc and with market-makers changing their pricing techniques we can expect plenty more ‘gappy’ markets.

Selling rallies in the EUR crosses is still the way to go, especially in the next 2 weeks as we approach the ECB meeting and the Greek election. I’d also definitely avoid EUR/CHF, way too risky.

  1. Hey Mike, happy new year to you. The big interbank platforms are under investigation from the regulators for running alogorithms which supposedly set up the market in their favour. Many of these practices are seen by bank dealers as protecting themselves but maybe regulators don’t see it that way. Whatever the case, the big market makers will undoubtedly reduce their levels of support which in turn means that fewer other players will join in the mkt, all of which will take liquidity out of the market

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