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Old 03-17-2008, 03:53 PM
Art Krantz Art Krantz is offline
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Re: Wide Spreads in Many Pairs Today

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It was a result of increased risk. I think the same thing is happening now. The Bear Stearns death and abnormal Fed actions have increased uncertainty and very likely reduced liquidity, requiring brokers to increase spreads.
Like Cary say's, it's down to shallow liquidity. A good few dealers were paring off late into Friday's New York shift & those caught on the hop attempted to fire thru into the Sydney-Tokyo opening lap.

Interbank were straddling 10-15 wide across multi-pairs into Tokyo according to colleagues & London desks have been squeezing (large) orders thru on thinning breaks, apparently using intervention rumors as a cloak.

All sorts of dodgy games being played out there today. It will continue this week as those with keen agenda's (to work step orders) attempt to manipulate events to tag their books into the approaching long weekend.

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