With currency markets stuck in fairly narrow ranges for much of the summer months, we’ve had a series of violent one-day moves that look like the beginning of sustained trends only to see the “trend” peter out, often in little more than a day. Typically the moves are in reaction to a piece of economic data that goes against the prevailing wisdom of a reflation in the global economy (the July payrolls were an exception to that rule). Case in point was yesterday’s global stock market correction which fostered a bout of risk aversion. After essentially a one-off move, there was very little opportunity to profit as the market traded in tight consolidation ranges for hours.
Summer is drawing to a close in the next few weeks and with any luck attention spans will lengthen as the days shorten. That would give traders a chance to enter trades along the way and not have to have perfect entry points like we’ve seen in recent weeks. We can always hope.
