Here I am a lil pipsqueek trading my mini account based on economic data. With most hidden and secretive government actions, I am wondering and know the following is probably true…
A major bank with 2 billion dollars being traded in the forex market, like me is waiting on a major economic data release. Let’s say the news is the US CPI core to be release at 8:30am (so they say) and analysts expect the news is good up 5% from the previous quarter so they post that in the “Forecast” . The actual figures are worked out(behind closed door) turns out the CPI figures are down -2% bad for me because I’m going with the forecast.
Now me, the lil pipsqueek, don’t have any in roads into what it going on in the financial world, but common sence tells me somehow the major bank will get that data 1, 5 or even 10minutes or more before 8:30am and they have already positioned themselves for a profitable trade before the general “john public”.
Am I paranoid or could there be some truth to this…because I really dont see a bank sitting , twiddling thumbs, sweating and hoping to make money like the rest of us.
Conclusion, how do we get that info before the other, if it is at all possible.