Fx Update

Global FinanceVol. 22 Nbr. 11, December 2008

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Summary


Once the global financial crisis had grown to a head at the start of the summer, trading in the foreign exchange markets was swiftly characterized by a wholesale retreat in trends ingrained in the marketplace in recent years. You feel fairly sure that, notwithstanding continued volatility, you may be in for some particularly sharp price movements before year-end. You strongly suspect there are two broad elements within the FX market. There are those who have earned profit and hence wish to exit the market. If so, then it will presumably lead to sub-optimal liquidity for the second element: investors eager to secure some profit, having been caught on the wrong side of trades one time too many.

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Fx Update

Once the global financial crisis had grown to a head at the start of the summer, trading in the foreign exchange markets was swiftly characterized by a who...

See the full content of this document

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