Look for quick opportunities in the crosses when volatility gets extreme

In my view, most of the recent action has been related to positioning and sentiment in the USD and in the JPY crosses. Yet when the proverbial hit the fan yesterday, we saw big swings in pairs like EUR/GBP and AUD/NZD which are basically unrelated to the bigger picture events. These swings are generally reversed once the market settles down, so the more risk averse trader can sit back and wait for these opportunities to develop.

  1. Hi SLee,
    I hope all is well..
    I do not understand why the $/J and the CAD/J
    are moving up.
    Any thoughts?

    Thank u!

  2. I think you are finally beginning to understand what makes the market move 🙂 Just usual Friday cut-n-thrust with market looking for weak side and week-end stops

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