VIKTOR EPERJESY
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The chart shows how several brokers' EURUSD spreads looked at-around the NFP announcement, time is in GMT. The red line represents the most scrambled situation at 12:32, when aggregated spreads got the widest. The brokers are ordered by their 12:32 spreads, thus tightest brokers are on the left, least competitive brokers are on the right. Apparently, some brokers decided to sit on the bench until situation calmed down.
Limitations apply, however. Commissions are not taken into account so the chart does not reflect overall competitiveness of brokers, but rather an impression on how spread volatility unfolded and how particular brokers handle economic events. Also, a competitive quote doesn’t mean competitive fill price. Slippage due to low liquidity and/or latency is frequent especially around such events.
The next chart shows how EURSD spreads got somewhat wider right before the economic event, how they sky-rocketed right after the announcement and how they consolidated after a couple of minutes at a slightly higher level. The y axis shows the actual aggregated spread of 90+ brokers expressed in percentage of its 12:25 value. In plain English, the peak around 500% means that the monitored 90+ brokers’ spreads got 5x wider at the busiest time.
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Editors’ Picks
EUR/USD trades with negative bias around 1.1730 amid recovering USD; downside seems limited
The EUR/USD pair kicks off the new week on a softer note, though it remains within striking distance of the highest level since early October, touched last Thursday. Spot prices currently trade around the 1.1730 region, down less than 0.10% for the day.
GBP/USD holds steady above mid-1.3300s as traders await key data and BoE this week
The GBP/USD pair remains on the defensive during the Asian session on Monday, though it lacks bearish conviction and holds above the 200-day Simple Moving Average pivotal support. Spot prices currently trade around the 1.3360 region, nearly unchanged for the day.
USD/JPY weakens below 156.00 amid Fed rate cut outlook, BoJ rate hike anticipation
The USD/JPY pair trades on a negative note near 155.75 during the early Asian session on Monday. The US Dollar softens against the Japanese Yen amid the prospect of interest rate cuts by the US Federal Reserve next year.
Editors’ Picks
When are the China Retail Sales, Industrial Production and how could they affect AUD/USD?
The National Bureau of Statistics of China will publish its data for November at 02.00 GMT. AUD/USD trades on a positive note on the day in the lead up to the China Retail Sales, Industrial Production data. The pair gains ground as US Dollar softens amid the prospect of interest rate cuts by the US Federal Reserve next year.
USD/JPY weakens below 156.00 amid Fed rate cut outlook, BoJ rate hike anticipation
The USD/JPY pair trades on a negative note near 155.75 during the early Asian session on Monday. The US Dollar softens against the Japanese Yen amid the prospect of interest rate cuts by the US Federal Reserve next year.
Gold edges higher above $4,300 on Fed rate cut bets
Gold price attracts some buyers to around $4,315 during the early Asian trading hours on Monday. The precious metal extends its upside to the highest since October 21 amid the prospect of interest rate cuts by the US Federal Reserve next year. The delayed US Nonfarm Payrolls report for October will be in the spotlight later on Tuesday.
Week ahead: US NFP and CPI, BoE, ECB and BoJ mark a busy week
After Fed decision, dollar traders lock gaze on NFP and CPI data. Will the BoE deliver a dovish interest rate cut? ECB expected to reiterate “good place” mantra. Will a BoJ rate hike help the yen recover some of its massive losses?
Big week ends with big doubts
The S&P 500 continued to push higher yesterday as the US 2-year yield wavered around the 3.50% mark following a Federal Reserve (Fed) rate cut earlier this week that was ultimately perceived as not that hawkish after all. The cut is especially boosting the non-tech pockets of the market.
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