The lead there is Marco Hague; he and others have 30+ years of trading experience, from within London, and with institutions like BoE. That's a good thing in times like this.
Today's commentary is particularly well placed IMO; here's just a few paragraphs. The video version is even more useful.
The instability of the global markets and the huge question marks over global growth and economic debt ratios have combined to create a near-term trading environment that needs to bank early, reduce exposure and expectancy, and have traders prepared to take set-ups in-line with 4-hour chart trends wherever possible. However, the lack of liquidity and the ability to melt-up or melt-down with impunity does not allow too much room for error.
Summer-time trade has specific nuances, and as traders witnessed in 2008 sub-prime and 2009 credit-crisis summer-time trading, it resembles a theme park roller coaster ride most days. The 2010 debt-growth crisis will be no different, but as soon as August is finished the swing towards a trend is very likely to be dramatic. The question is whether the bubble in Treasury Note values (or Treasury yield collapse) will burst, or whether equity markets will follow the yield curve lower as inter-connected global markets scramble for fair value when big volume eventually hits.
Forex pairs are holding steady as the equity and bond algorithm gladiators do battle with each other, jousting their way through each session looking for an edge that will set one or the other off on another liquid burst of energy-based trade that at this time just cannot find the energy to break and hold.
It is unquestionable that right now forex is following the global equity and bond trail, with few reasons for currency traders to expect a break of the previous session high or low, unless it is timed to coincide with the 2am, 7am, 11am ET daily realignment of futures contracts.
