Low Liquidity and Massive Redemptions Contain Forex Pairs -- Seeking Alpha: "hake the effects of the Thursday futures move that dumped two percent of value into the waste paper basket in two 30 minute chart moves. Commodity markets are picking up the speculative interest that has moved out of equities in swathes, as investors move away from the daily debacle that is intra-day stocks trade at the moment.
The record redemption numbers, coupled with a move into the fixed income markets while equity algorithm and high frequency trading tries to come of age, is not allowing too many moves to break the previous session ranges.
However, as forex traders have seen this week, the one or two 4-hour chart candles that house all of the days moves are getting the job done in quick time, and then resetting themselves very quickly. In the current market conditions it would be very easy to blink and then have missed the moves for the whole day.
Most pairs are at their opening prices, with only Usd/Jpy able to move and hold 40 pips. Not to say that there has not been tests of intra-day ranges, but there is just not enough liquidity or momentum to allow the moves to hold. For now, the forex market has found fair value. Hopefully equity trade can do the same very soon."
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