On Friday, USD/ZAR finished around 7.7650. But when the markets got going Monday, it shot up to a high of 8.2316. A cynical buy-side contact immediately suggested that the cause was investment banks chasing stops in a thin market since Japan was shut.
The reality was actually far more interesting and highlights that it is not always rosy in the exchange-traded FX garden. It also shows that it is not necessarily always better to trade on a quote-driven platform, especially when there are no quotes in the system.
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