Talking Aloud : Twilight In Trading Markets

Two top currency-dealing banks confirm involvement in global investigation into possible manipulation of FX markets – referring to UBS and Deutsche.

Stanchart puts senior fx trader on leave, reported yesterday on Reuters.

And today, Barclays is roped in to help with the probe which was started by RBS some months back.

Credit Suisse to overhaul their interest rate trading business as UBS and gang, including Deustche and Barclays restructure.

Rabobank CEO resigns over Libor scandal.

Banks are limiting risk taking as it is, leaving a void when hedge funds, central banks and SWFs hit the street and the only asset left to manipulate safely is Gold. Gold really does not come under any jurisdiction.

I believe that now is the best time to adopt a macro approach which will be the way forward. Behavioural trends and market positioning are ever the more important along with awareness of political and economic developments.

Day traders gunning for chart points will be pitting themselves against the algorithmic models gone wild and market moves will be more exacerbated than ever. We have come to a twilight in trading markets that is evolving into a new ballgame.