MetaTrader 4
Vertex FX 10

USD on the back foot

Following the Christmas trading break and prior to the New Year, liquidity is thin as many are away from their desk. In the FX market, the limited participant’s leads to reduced liquidity, movement in the majors can be more sporadic than usual. Spreads are slightly wider in the institutional market to reflect the fewer traders at their desk and limited risk appetite. (This doesn’t affect Abshire-Smith trading accounts with fixed spreads).

In the FX market USD has been on the back foot against the majors, with cable trading to a 30-month high (16576) and EURUSD the highest since October 2011 (1.3893). Subsequently both have pairs have come off with the price action exaggerated.

Next week is likely to see fragmented liquidity until the New Year begins, and normal trading resumes.  

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