EUR/JPY eases back now Fixing is done

This is how it usually works, and please try not to be too shocked if you hear of banks trying to manipulate the market :)

  • Corporates put in their orders for transactions to be filled at the Fixing rate
  • Banks collate these orders and let’s say there is a net interest to buy EUR/JPY at the fixing rate
  • They obviously want to sell to their customers at the highest possible price so they try to drive the market higher into the Fix
  • As soon as the Fixing is over, the energy falls out of the market and it pops back to where it was before

That’s why I could never understand why corporates traded in this manner, but some are presumably tied by their inhouse rules and have to trade at the Fixing rate.

10 Comments

  1. Banks. Doncha just love ‘em.

  2. Sean, Mr Van Rompuy was re-elected as president of the European Council. The markets will rejoice!! I can imagine the excitement in Europe when they read the news about it. Expect the euro to rise very sharply to every currency! Do you share this view?

  3. As always, Thank you so much for this info. It really helps for the new traders to understand these fine points.

  4. Sean, Thanks for this gem of an information.This is what makes ForexLive so
    priceless.

  5. Well it prevents the corporations from having rogue traders. but then the bank
    use alittle finesse to execute the orders which at time can be lumpy and put them at risk. Unless you are the trader who for two decades does this type of business
    and is well paid until you get passed up for management position so you turn the bank in to authorities in order to get one more big pay day.

  6. Thanks for this info Sean. BTW, do you mind sharing where you get your rate fix info from?

  7. Eurotired, in these parts the word “rejoice” is used in jest.

  8. Thanks a zillion Sean, it answer question that keep ringing in my head for weeks.

  9. Sean can u please tell me the fix times for all the majors . GMT please. Much appreciated.

  10. Andre 09:50 Tokyo time for their fix and look in Forex Jargon for others

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