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Monthly Archives

October 2016

Market Opinion

By | FX Trading, Opinion, Government | No Comments

Non Farm Payrolls or Friday Night Lotto.

The markets are focused on next weeks’ NFP numbers in the U.S as the “make or break” decision for a much anticipated rate hike.

Is this really the confirmation the Fed needs to pull the trigger?

Surely not, there are bigger fish to fry.

The markets (and the Fed) are looking for excuses to do nothing until the election results are in.

Talk about 2 underwhelming Candidates. Which way will America vote.

Hillary, with all her experience in political office, can she deliver on her economic policies of Economic Growth, Fair Growth and Long Term Growth. You would think she already has Foreign Policy down pat, despite Donald’s call of the commencement of WW3 in Syria should Hillary win.

Donald, on the other hand, says he will create 25 million new jobs over 10 years. Create a pro-growth tax plan, an America first trade policy and an unleashed American energy plan. Not to mention boosting growth by 3.5% per year on average.

Could this be a “Brexit” like scenario in the making?

Meanwhile, markets continue to jump at shadows.

Adrian Jones

GBP Flash Crash 7th of October, 2016

By | FX Trading, Opinion | No Comments

How this happen to a major currency pair in a mature market in 2016.

Complacency, that’s how.

In the period in between NY close and Asia open proper, there was a distinct lack of buy orders placed in the GBP across the various electronic platforms. Liquidity was virtually zero. The buyers were no match for the sellers. It didn’t help matters when the market is nervous due to ongoing negativity and uncertainly over Brexit.

Enter the “Algorithmic Traders”. Electronic systematic traders, sometimes referred to as “black box” traders are programmers dressed as traders. These automatic traders chase the best bids and offers in the markets. Occasionally, when is little liquidity in the market “the Algos” chase the market down or up, in this case down causing a “Flash Crash”

The sterling traded from 1.2600 to 1.1800 in minutes.

Stop sell orders were triggered initially to 1.2200 where the first pocket of liquidity/buyers was found. Between 1.2200 and 1.1850, 4 billion GBP traded hands.

The commentators are screaming for an investigation, and regulation. Too late boys and girls. It’s history now.

My workshop will teach you when to stay out of vulnerable currencies pairs and markets and the reasons why.

Protect you Capital

Adrian Jones