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Low Liquidity Leads to Erratic Price Shifts
Written by Saumyatanu   
Monday, 27 December 2010 16:38

Low Liquidity Leads to Erratic Price Shifts

 

Markets were relatively muted in overnight trading, as a lack of news events have created a low liquidity environment. Still, there were some erratic price movements to start of the week. The EUR/USD pair once again dropped below the 1.3100 level and the GBP/USD has dropped over 40 pips since last night. Today, traders are warned that even the slightest activity in the market can create huge price shifts, seemingly for no reason.