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Did the EURUSD in US session Friday night make any sense?

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Did the EURUSD in US session Friday night make any sense?

Postby Eurusd Trader » Sun Oct 23, 2011 6:07 am

For many traders the move for EURUSD in NY Friday night was a surprise given the uncertainty about the outcome of the Brussel meetings.

I shall not comment on the specific EURUSD move late in US session this Friday but more generally to the moves currency pairs do in US sessions Friday afternoons.

In Europe – for many years – we have always said that during this part of the trading week, you stay away. Take a long weekend and let the US traders run like chickens. That’s what they do. Moves are often totally unpredictable – likely because there is absolutely no debt in the market.

I have not seen moves in US session on Friday afternoons as any indicator of value to what is going to happen the week after – unless there have been news or data from that Friday supporting the move.

Most Fridays there aren’t any such news or data of interest – and still the US session at the end of the week shows volatility and moves. That’s why we ignore them in respect of what to do the week after.

The debt of the Foreign Exchange market you find during European opening hours. Turnover in the market then is almost three times what it is when the US session is on its own. In fact – the Asian session shows more of debt than what is the case for the US session.

Big client orders and the bigger moves by market makers are executed accordingly. You need debt in the market to do those amounts – and such debt you don’t find in the NY session. As such – you wait until the next day – and that’s when you see what volume is doing.

Sorry to say – but US session is looked upon to be one to “play” if you are in for fun – but one to avoid when you have more serious stuff to do. It’s been like this for years – and I have seen it for 34 of them.


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