EUR/USD and Trade Platforms

This morning’s post mentioned central bank website overload on meet days. Why crowd the ECB website. I see 3 reasons: Euro Repo rates, Euro Commercial Paper Rates or Libor however Libor is a readily available interest rate. All 3 interest rates are an indirect EUR trade and the overall effect to EUR/USD rises and falls are minimal, at least as it concerns EUR and Europe. Other nations maybe different as each nation runs their own specific money market as they see fit to their own interest and exchange rates. If those market participants had an interest trading EUR/USD this morning, the ECB website was not the place.
This morning was mentioned EUR/USD above 1.0605 then 1.0630 and 1.0645 was next. EUR/USD dead stopped at 1.0615, we sold higher to the break below 1.0597. EUR/USD dead stopped in the 1.0560’s.
Exchange rates everyday must fulfill destinations. Its almost by law destination must be seen and its a 200 years old concept based on exchange rate structure. How does a trading platform know this and how does each platform the world over broker to broker, bank to bank know the destinations must be achieved. Why do they do it all at one time. Does it really take money to drive a currency price.
When the SNB dropped the EUR/CHF 1.2000 Floor, EUR/CHF dropped 3500 pips in minutes. As if thousands of traders were waiting with billions of dollars at the ready for the SNB to make the move. Interest rates was the determining factor to how far and where the currency price would end. Money wasn’t an issue.
Thankfully I’m not an FX insider but just a 14 year trader. I designed trading systems as my own knowledge grew. I began with indicators then moving averages and moved to Statistics. Now I realize a child of 12 can trade currencies daily and profit. Here’s why.
My feeling is Platforms are programmed to interest rates. The money part in what moves a currency price is so far secondary, it doesn’t matter. With $10 or 10 trillion, the currency price will still reach its destination. All this new look at yields and then the Real V niminal is pure pablum. Some take 1 yield from the whole, explains nothing and its far removed from the structure of exchange rates.

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