Taking a break from his “big picture” macro observations, and – at least recently – bashing of complacent traders, algos and central planning, overnight Bloomberg’s macro commentator focused on the FX market in general, and why he believes it is the “best” market for those “politically bent”, noting five particular reasons for his adoration of FX trading:
everything is fair game: “in today’s world there’s nothing local about almost any aspect of the process” and FX is the only place where one can short with impunity“ there are no negative connotations associated with shorting: “Every trade involves doing so. You get to attack things without someone questioning your couth. After the U. K. referendum the currency got killed on perceived relative value, but that was all right because the FTSE did just fine. You didn’t see the BOE bemoan the lower pound” so simple, Mrs Watanabe can do it: “In equities and bonds it’s best to first ask how an individual market works and what paperwork is needed. In FX it’s point and click and your prime broker takes care of everything else” all that matters is speed: “It’s in the DNA of FX traders to feast on a headline and then ask what it’s made of. Speed is of the essence.“ and, best of all, you get to trade first, ask questions later: “currencies the perfect vehicle to get involved in issues one may or may not actually know anything about.”
This post was published at Zero Hedge on Jul 19, 2017.
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