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Weekly preview - Central banks narrow the ranges
Central banks and quasi-official institutions have seen growing influence on the market over the past few months. Their action falls short of the much-vaunted manipulation called by market players, but the impact will certainly remain important. They are likely to play a pivotal role in curbing major currency breakouts as they have a dual incentive in sustaining relatively narrow ranges. High-frequency traders are tending to have a bigger impact on the very short-term market moves as algorithmic trading chases the next news headline, but the time decay of these moves is rapid. There has also been a downturn in ... (full story)