Talk about a sign of the times…China cut rates today in a dramatic turnaround from just a few months ago when authorities in that country were tightening credit in every way imaginable. Markets have further punished oil prices on fears of a macro global slowdown. Risk aversion has knocked EUR/USD and EUR/JPY for a loop, down dramatically from overnight highs.
One a day like today, liquidity will be very,very difficult to come by. Keep positions small and stops wide or you will just be making a contribution to someone else’s P&L…