Insane price action has been the norm the last several sessions and new ground will need to be seen in the markets before that changes. With prices treading on familiar ground, there is little reason for traders or investors to get involved in the middle of the ranges. That’s why the markets are gapping on orders of relatively small size, amplifying their impact. All the interest is clustered near the range extremes. It also indicates that market-making banks are reining-in their algorithms, allowing them to accumulate only small position before liquidating, a sign of nervous markets and nervous mangement.
Punting for pips in these markets is a difficult proposition at the moment.
