From JK on FX
UNINHIBITED AND UNRELIABLE - Risk correlated assets have performed well over the past few sessions, although the performance has been seriously mitigated by extremely thin conditions on the back of the US and Japanese market closures. In my experience, the rally in the Euro amidst the razor thin trade is not surprising, as markets have a tendency to push in the direction they had been moving pre-holiday. However, the broader trend is still Euro bearish and risk negative, which I suspect will start to kick back into gear when fuller trading picks up again on Monday. My best recommendation is to use Wednesday’s closing levels (last time we had normal trading volume) as a more realistic frame of reference.
UNINHIBITED AND UNRELIABLE - Risk correlated assets have performed well over the past few sessions, although the performance has been seriously mitigated by extremely thin conditions on the back of the US and Japanese market closures. In my experience, the rally in the Euro amidst the razor thin trade is not surprising, as markets have a tendency to push in the direction they had been moving pre-holiday. However, the broader trend is still Euro bearish and risk negative, which I suspect will start to kick back into gear when fuller trading picks up again on Monday. My best recommendation is to use Wednesday’s closing levels (last time we had normal trading volume) as a more realistic frame of reference.
Trade smaller than rational because the market is irrational...
