Market Snap-Shot 5.11/12

Timing is Everything!

It is a well known fact that after a distinct and dramatic price action in the CCY market again takes a pause before the next event risk. The only difference is that a central banker again has taken the initiative in talking interventions.

When was the last time you can remember having a concerted central bank market intervention? 

Although, there are two separate issues with the ECB reducing rates as compared to the BOE raising rates. Please refer to and read related article.on Concerted Central bank Interventions and Timing USDJPY - Unilateral Intervention as reference study for certain market conditions.

It is vital to note these events to know what certain market conditions do trigger central banks to really take action than simply using the power of verbal intervention alone that can also move market prices and trigger investors reaction almost instantaneously. And this is where true"Judgement Calls" are made or break!

Market Snap-Shot 5.11/12