Hi,
Can any one explain the price action on Friday after London close and before NY close
there was a spike in prices across all Kiwi pairs that to me did not make any sense was this
due to market manipulation by big players . or what caused it?
Thank you
Prices move because the big players are buying or selling. During this time period, London had already closed and NY was probably doing very light business in the wind-down towards the 4th July weekend: when volumes are thin, price moves more reactively to big trades.
There’s no way to be absolutely certain what happened or why or who did it. The NZD usually trails what the AUD does anyway. The key question is what to do about it. Most traders probably won’t mark up the extremes of this spike as significant on their chart and it won’t change their plans for next week.
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I think it was very low liquidity and hence very volatile conditions being only the last few hours before weekend close and adding to that was holiday in USA. Definitely not the ideal time to trade.
Definitely not big players because they would have been enjoying a well earned holiday. Maybe some idiotic robot some fool using to blow up their account.
Just my rotten luck or bad judgement i had put 4 limit orders in ready for next week’s trading all where stopped out lost 5% of my ac i won’t be doing that again
Stick with the plan
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Well, I would say that although for long-term investors the moment of entry into the market in hourly terms has an extremely limited impact, for short-term speculators it can be vital in order to maximize the final return.
In this sense, in increasingly global markets in which investors do not limit their universe to national financial assets, but rather seek opportunities among all the companies in the world, the time difference makes it necessary to design a different strategy to attack to each of the markets. And it is that the hours of optimal performance are not the same in Europe as, for example, in Asia or America.
The differences also vary depending on the type of financial asset in which you want to put your money. Thus, it is essential for investors to keep in mind what are the hours in which they must invest in foreign currencies, what are the hours in which they can obtain yield from variable income and which are the hours when they can take advantage of the pull of the debt.
If they were orders for moves you expect next week, don’t put those orders in until Monday and maybe even wait till London or New York begin on Monday since there is still lack of liquidity till then.
You should definitely wait till monday before putting your trades.