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torero

Wide Spreads in Many Pairs Today

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Is it me or am I seeing this like in Tokyo sessions? I know the rates have been tinkered with late last night but it doesn't move slower than the normal quick move. I see slow movement with wide spreads. GBPJPY are at least 5-10 pips spreads, even GBPUSD and EURJPY I see is 4!!! Does that mean there's low volume or just lots of volume being thrown at the market???

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  torero said:
Is it me or am I seeing this like in Tokyo sessions? I know the rates have been tinkered with late last night but it doesn't move slower than the normal quick move. I see slow movement with wide spreads. GBPJPY are at least 5-10 pips spreads, even GBPUSD and EURJPY I see is 4!!! Does that mean there's low volume or just lots of volume being thrown at the market???

 

Hi Torero. I don't know if you recall, but during the August crunch, eur/jpy spreads increased quite substantially and held throughout the day. It was a result of increased risk. I think the same thing is happening now. The Bear Stearns death and abnormal Fed actions have increased uncertainty and very likely reduced liquidity, requiring brokers to increase spreads.

 

Right now, Oanda is showing eur/jpy spreads of 3, which typically aren't seen except during the Asian session.

 

Entries in these conditions require careful placement to be sure.

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It's 11:40 am right now EDT, and spreads on eur/jpy just doubled to 6 with an accompanying large increase in spot price ranges. I don't know what's caused that (yet), but this is typical for days like this when every little piece of news spooks the market one way or the other.

 

Be careful out there, everyone! This is not a terribly well-behaved system right now.

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  cowpip said:
It was a result of increased risk. I think the same thing is happening now. The Bear Stearns death and abnormal Fed actions have increased uncertainty and very likely reduced liquidity, requiring brokers to increase spreads.

 

 

Like Cary say's, it's down to shallow liquidity. A good few dealers were paring off late into Friday's New York shift & those caught on the hop attempted to fire thru into the Sydney-Tokyo opening lap.

 

Interbank were straddling 10-15 wide across multi-pairs into Tokyo according to colleagues & London desks have been squeezing (large) orders thru on thinning breaks, apparently using intervention rumors as a cloak.

 

All sorts of dodgy games being played out there today. It will continue this week as those with keen agenda's (to work step orders) attempt to manipulate events to tag their books into the approaching long weekend.

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It’s comical to witness, it really is :o

 

Actually, on second thoughts it's incredibly sad & pathetic, but you gotta giggle I guess.

 

If one of those 4 star ECB and/or BoJ generals so much as farts near a mic this week we’ll have the “intervention pussies” screeching & hollering like sexed up banshees.

 

Deutsche have suspended some of their super troopers on the Asian desk apparently, for order book irregularities.

 

Every time you attempt to slice a wedge thru the Yen crosses via Fimat or BoNy, the screen belches atcha.

 

What’s all the skittishness occurring over at BoA all about Krantzy? Anna couldn’t shuffle out there earlier either.

 

Jesus H Christ, a little turbulance & those f****** junior high dealers & supervisors out there at the so called ‘big desks’ begin pissing their little panties. Wait till they really have something to contend with.

 

Times like these we get to see just how f****** useless these college kids really are with their folders full of worthless degree garbage.

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I've been stuck to GBPUSD since the spread was better than the rest I've seen today, 3 was max I've seen and stay with small positions. The spreads got better as NY opened up but I'm not taking chances. I like the steady directional movement today though but when I saw the opening London with high spreads I just waited.

 

The gap on GBPJPY was amazing as well as it moved lower on Tokyo, I was tempted to get in but seeing the spreads just killed my temptation.

 

Yeah, regarding degrees and prestigious schools, not convinced anymore with the hype and hypocrisy going on with the turmoil. Smoke and mirrors through and through.

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  milliard said:

 

What’s all the skittishness occurring over at BoA all about Krantzy? Anna couldn’t shuffle out there earlier either.

 

They (U.S & Russian tiers) were sweeping stops underneath 152.80 as Anna & Tess were trying to pare off Andre. They eventually got their ticket but it was a little slow feeding thru that's all.

 

Far as I can make out, French, Swiss & Mid-East names have been bailing on distressed prices all (european) morning & had very little joy either into NY. Mainly EU/Jap & CHF cross traffic.

 

Similar scenario, although not as chaotic, on Cable & Dollar/Jap. Usual suspects (East Coast) attempting to pump wedges thru on the sly LOL.

 

154.0 to Friday's NY lows, of interest to latecomers...Jap traffic noticeably picking up into late afternoon trade. They sure whacked 2.0100 huh? Tess had that marker radared thru Friday. There's your key Cable fulcrum from here!

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milliard , et al,

 

would it ever be to certain parties advantage just to shut down the retail data feed for a while?

does that happen? just heard that most fx feeds had interuptions today in hardly fast conditions...

 

Many thanks,

 

zdo

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Krantzy:

 

Stops below 5520 appear to be of more concern (to the thumb suckers) than semi-serious Jap flows. What the hell do they pay these jerk off's to do all goddamned day long?!?????????

 

Ya, your 2.0100 was/is a slam dunk all night long....fast money's been eyeing that since the top channel @ 0220 pitched the supply. You really rate all that Russian shit?? I think it's ghost money myself - those characters might venture out when the flows are full, but you don't usually see them when the going gets tough...well, not via London outlets anyhow.

 

Updates would be nice ever once in a while - Reuters went walkabout today :o :o

 

zdo:

 

Not to the extent that it would be noticeable, no. Trouble is, when liquidity dries in circumstances such as these, the wholesale & top tier crowd go into a huddle.

 

Things can get awful tetchy as moving (ratcheting) size becomes problematic until full visibility (Frankfurt & London) occurs.

 

Dealers (at certain retail shops) holding overweight positions or top heavy biased order balances won't be able to offset if counter parties are unwilling to take their flows. The big desks (Primes & majors) will handle & sort their internal flows first, & filter party traffic second.

 

Times like this when you get to witness who really is doing their job correctly...& it's usually NOT the retail fly-by-night jockeys.

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  milliard said:

 

You really rate all that Russian shit?? I think it's ghost money myself - those characters might venture out when the flows are full, but you don't usually see them when the going gets tough...well, not via London outlets anyhow.

 

"the russians are comin, the russians are comin"....when the going gets tough, the russsskies go-a-missing :helloooo:

 

Easy money for those good ol boys. Any scratching or pushin and a shovin & they're off to their beds :o

 

Ok skip, it's 22.00hrs & I'm sure glad this shift has rolled to a close. Lets go tease a dealer & steal his satchel.

 

Another day another $ beckons the morrow.

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  zdo said:
milliard , et al,

 

would it ever be to certain parties advantage just to shut down the retail data feed for a while?

does that happen? just heard that most fx feeds had interuptions today in hardly fast conditions...

 

Many thanks,

 

zdo

 

zdo: I didn´t have any problems with quotes, feeds or trading today with MBT. What brokerage did you experience this problem?

 

Been shorting Cable all morning since 201.3, adding more positions as it keep going lower. Any clues as to where we may see support from the big boys?

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  torero said:
Any clues as to where we may see support from the big boys?

 

You just got your initial traffic light @ 9950 the solid upper tier range b/o line carried through from January.

 

Layered stops rest underneath back to 9775-50 off the years solid 1.9400 support camp. I guess it'll be 2 way back to 775-50 as they attempt to defend the zone which turned that battle line from previous supply to demand on this leg.

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Hi Anna-Marie!

 

Nice to see ya back! Thanks for the clue! I cleaned out last night before tokyo opened, I figured the wide spread would have taken my stops eventually. I'll keep an eye on these levels.

 

I suspected 2.0000 round number would have others make their stand from the bears.

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  torero said:
I cleaned out last night before tokyo opened, I figured the wide spread would have taken my stops eventually.

 

I suspected 2.0000 round number would have others make their stand from the bears.

 

Profit paring was in full flow Friday. Art was lightening up into Fridays strength, which tick boxed the late week double top slip. But sure, if you can book a little profit & hang fire then all well & good.

 

The aggressive specs will be re-loading longs at this initial support line (9950), but studier core longs won't re-arm until we get a clearer view of this weeks shenanigans (including todays Fed gig).

 

Our grid is marked out below. That supply-demand switch holds the defense at current levels. Decent stops now building all the way back to the stiffer defense at c9750.

 

Yours (for varying reasons) might look slightly different, but the shaded area's will no doubt harbour sensitive activity on re-visits.

activityzones.jpg.d91e0d0aa63dbf0f299cbb60065cf764.jpg

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Thanks for that, Anna-Marie! Yeah, last night´s 9950 was hit and hasn´t looked back since then. I´m little a surprised that prices are moving briskly despite today´s Fed announcement. It´s as if it´s a given that the Fed is going to lower rates, between .25 to full point. I´m still skittish about getting in today.

 

With all the news hitting the financial markets lately, I´m just glad I´m trading forex, you don´t deal with any news except the news from CBs.

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  torero said:
I´m little a surprised that prices are moving briskly despite today´s Fed announcement.

 

I´m still skittish about getting in today.

 

Always best to obey your instincts if they begin flashing warning signs. There's plenty of juice left to pick it up again at the next step.

 

Liquidity is still flat out there torero (on Cable), pockets of early bird aggressive specs picked it up & ran with it at the Tokyo-London overlap as it brushed the near term supports.

 

That + short covering ahead of the Fed looks to have shunted it to yesterdays highs. But traffic is light out there. Still, that's what thin markets will do when the psychology is fraught.

 

Similar scenario on the Euro/Jap...Krantz earmarked the latecomers (bargain hunters) to that pair yesterday, with interest from 154.0 to Fridays lows (c155.0) where prices have stalled into NY.

 

They bought the pullback nice & clean into early Tokyo after the stops had been probed & swept under 152.80. Obviously no sellers at work there, hence the green light to pitch it back.

 

Positive Stateside equities, particularly financials, won't have harmed that journey none.

 

Be interesting to see where they decide to run one or two of these pairs (Euro excluded) after the Fed gig. One or two heavyweight ECB chiefs on the wires today too upping the ante, along with lower tier Jap officials chattering up a dust storm.

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  Anna-Maria said:

One or two heavyweight ECB chiefs on the wires today too upping the ante, along with lower tier Jap officials chattering up a dust storm.

 

That wouldn't be a vieled reference to all the talk of this supposed coordinated rates cut chatter doing the rounds would it Annie Oakley? :)

 

Care to lay a bet that item of mischievous spook speak slipped out of Hank Paulsons office?! :roll eyes:

 

2.0220 the fulcrum then huh? 0100 canned & panned.

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:o :o You know me better than that.

 

Besides, Trichet's foot soldiers are conspicuous by their very absense (today).

 

Ahhemmm (she clears her throat)....can I not count the 28 minutes (via a 1min frame) it got buffered & jostled before waving adios to 0100???

 

But yeah, 0220 carries the torch into the March action I'll give you that :)

 

and that's about the only thing I'll give you this quarter buster!!

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