Some of the moves of recent days are explainable by economic or political events and others go right in the face of those same events. I think we are seeing some major flows going through the market and as we know, the flows always win.
- Goldman Sachs issued a buy recommendation at 1.4050 in the EUR/USD and since then we have seen some very large buying of the EUR.
- HSBC issued a sell-cable recommendation and both they and Barclays have been very big buyers of EUR/GBP over the last few days.
- AUD/USD has moved from .9900 to 1.0225 on a large M&A related flow
The big players always know about the big flows and as long as these flows are occuring, its pointless trying to fight them in my opinion.
Good luck today and TGIF.
