Let's get ready to crumble*!
Trading the forex market for over 2 and a half decades have never been as dramatic as a concerted central bank intervention ever stand-out in the mainstream even before the battle have started.
The aim of stabilizing a global financial market in an orderly fashion has always been the main objective, making certain that fresh cash liquidity would always be present in the market place. This was indeed a learning lesson from the credit crunch during the Lehman Brothers debacle and the Housing bubble. And would serve as the one of the most important strategy being applied today in a worst case scenario.
Weighing the factors of a Greek election, an emergency meeting of Finance ministers from the G7 nations could be held on Monday / Tuesday depending on the severity of the market response following this weekend’s elections were the highlights in the news wire. Not to mention the readiness between the Federal Reserve, and the ECB in providing the liquidity infusion needed in any eventuality and an IMF sanction for a Japanese intervention efforts are all being taken up in the unfortunate event of a financial meltdown. And how often do we get the real chance of being in one is another thing to think about. One of the most memorable events that occurred was the concerted central bank intervention, please refer to:
With that said, the financial big wigs are in it to win it! With their arsenal of leverage trading and the ability of a High frequency trading would make things worst or better than what it is today. As more low to high latency trading software and hardware are being built while main street investors try to catch the tail of the storm in any given market timing. Meanwhile, the law of supply and demand in the free market arena has never been so tightly contested on who has the better trading system's analysis.
And this is the addition on top of the Political turmoil that has disrupted the behavior, market sentiments and volumes of transactions of investors/traders in the financial market which would be harder to keep track of in a rapidly growing market volatility. Systems failure, delays and price transparency would be re-tested time and again. Although, market strategies would be well in place and better-off for those who apply a stringent and plausible trade position that could weather the storm whenever the case may be. Thus, permitting us to outlive this would-be turmoil and cultivate it in a lucrative manner at the end of the day is the best.
*crumble: British and Irish (European origin) that can be made into a sweet or savoury version.
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