The big factor in forex markets are the central banks. When they start intervening than the market becomes non random. They can push or drop the prices to whatever level they feel is better for their economy. Once another central bank starts intervening against the first central bank than there comes another story, currency wars. Retail traders dont even cause a blip on the charts, not even hedge funds.
As long as central banks have electronic money in their disposal nothing can beat their targets. Only other strong central banks who are competing might effect the price. Who can stand against ECB, FED and Swiss Central Bank? Only one of them can stand against the other, thats all. If one of the central banks decide to take action, Soros would be a blip on the chart too.
Also central banks dont always need the electronic money either. They can easily spew out few words to scare the buyer or encourage the sellers.
So in my view it is only the central banks who play a big role in this market, the rest is noise (randomness)....
Swiss central bank decided to free the currency cap. Everybody knows what happened. So there is the proof of power coming out of mouths. If that wasnt enough they would have achieved the same result by using electronic money. Can you imagine what kind of money could be made if you knew that decision 5 minutes before? I bet there were some people in Swiss circle who knew that before it happened!
That is my 2 cents.
As long as central banks have electronic money in their disposal nothing can beat their targets. Only other strong central banks who are competing might effect the price. Who can stand against ECB, FED and Swiss Central Bank? Only one of them can stand against the other, thats all. If one of the central banks decide to take action, Soros would be a blip on the chart too.
Also central banks dont always need the electronic money either. They can easily spew out few words to scare the buyer or encourage the sellers.
So in my view it is only the central banks who play a big role in this market, the rest is noise (randomness)....
Swiss central bank decided to free the currency cap. Everybody knows what happened. So there is the proof of power coming out of mouths. If that wasnt enough they would have achieved the same result by using electronic money. Can you imagine what kind of money could be made if you knew that decision 5 minutes before? I bet there were some people in Swiss circle who knew that before it happened!
That is my 2 cents.