It’s a case of adapt or die in the hedge fund space and professional traders are being forced to trade increasingly tight ranges in order to try and deliver their monthly returns.
The ranges in the Asian time-zone have been very tight in recent months and we are now seeing big hedge funds trying to trade in-and-out of the market for as little as 10 pips. Desperate times call for desperate measures! Banks and Prime Brokers are pumping these professional players with as much flow and technical information as they can, desperate to keep a stagnant market trading.
I think we can (unfortunately) expect these quiet conditions to continue until the Northern Hemisphere holiday period ends in mid-September.