As expected this week it has been a bumpy ride across our strategies. The start of the week started really well and liquidity and movements were inline with financial reports.
However the perfect stormed happened on Friday with Russia taking over a nuclear plant, reports it was on fire, US payrolls coming in very strong, EUR shares diving and commodity prices going up and up and up. The majority of our strategies have handled it well.
The biggest currency movers have been EUR and AUD and our strategy Kosciusko is currently in drawn down as it has taken trades is EURAUD. The last time it traded this low was back in 2017 so it does not happen often. We have turned off the bots on this strategy so no further trades are opened. The bot opened the right trade as EURAUD is heavily oversold but with liquidity drying up and the EUR weaking and AUD going strong, it was a sellers market which drove it down.
Similar to last week we will now wait for the market to absorb the information to see the real impact it has on their currency and as such look for EURAUD to recover. As much as we do not like the situation we are in – this happens in forex and we are closely monitoring.
Keep you posted next week.
