Quick question for those in the know. The Fed is now threatening/warning that it might be forced to intervene, with EURUSD trading not far off record highs. By intervention, I mean actual buying and selling of currency, not just jawboning the price.
My questions are:
1) How do you actually know an intervention is an intervention? Are interventions historically a big brutal move over a very short time-frame, or do central banks do it more subtly - jumping on a retrace to make it far heavier than it would have been to try and persuade traders sentiment has changed, for example?
2) And secondly, what examples of actual currency interventions are there? May of this year seemed to be a fairly good example of a widely-held belief of when the ECB intervened but how/can we ever actually know?
My questions are:
1) How do you actually know an intervention is an intervention? Are interventions historically a big brutal move over a very short time-frame, or do central banks do it more subtly - jumping on a retrace to make it far heavier than it would have been to try and persuade traders sentiment has changed, for example?
2) And secondly, what examples of actual currency interventions are there? May of this year seemed to be a fairly good example of a widely-held belief of when the ECB intervened but how/can we ever actually know?
