MoneyTec Traders Community Forum - View Single Post - Does PAST price action determines future price action?

Nonpiker · 01-10-2005, 18:03

Trader ABC,

I happen to trade the interbank market directly on a professional level. I do not trade retail fx at the moment. The Federal Reserve does not intervene in the markets on a daily basis. Big banks do not set rates their customers do by buying/selling through them. EURUSD's rate is set basically by EBS, which is the primary paltform it is traded on. The rate at anytime is determined by the current bid and offer in the marketplace.

The FX markets are dominated by corporate flows. That is where the vast majority of volume comes from. Corporations do not necessarily take into account interest rate differentials when conducting business. If a large US corporation is doing a M&A deal in Japan they need to sell dollars and buy yen regardless if rates are rising.

What does having the same data feed have to do with anything?

What does preferential treatment to Soros or Buffet have to do with there ability to move markets? So much for Buffets preferential treatment...he has gotten killed on his currency plays.

01-10-2005, 18:03	#19
Nonpiker Degenerate Join Date: Feb 2005 Posts: 251 Downloads: 0 Uploads: 0 Rep Power: 4	Re: Does PAST price action determines future price action? Trader ABC, I happen to trade the interbank market directly on a professional level. I do not trade retail fx at the moment. The Federal Reserve does not intervene in the markets on a daily basis. Big banks do not set rates their customers do by buying/selling through them. EURUSD's rate is set basically by EBS, which is the primary paltform it is traded on. The rate at anytime is determined by the current bid and offer in the marketplace. The FX markets are dominated by corporate flows. That is where the vast majority of volume comes from. Corporations do not necessarily take into account interest rate differentials when conducting business. If a large US corporation is doing a M&A deal in Japan they need to sell dollars and buy yen regardless if rates are rising. What does having the same data feed have to do with anything? What does preferential treatment to Soros or Buffet have to do with there ability to move markets? So much for Buffets preferential treatment...he has gotten killed on his currency plays.