Something is brewing. The trading world is all too quiet.
Securities trading volumes are at a super low.
FX trading volumes are at a super low.
The Dow is chugging along nicely upwards gingerly on thin volume.
The EURUSD has hovered around 1.38 for far too long.
Something is definitely brewing and it looks like traders are just waiting for a trigger to send everything downwards.
So far the main possibility is the Ukrainian crisis, a sort of soon-to-be proxy war between Russia versus. the US and Europe.
Yet, other key issues could lead to further dampening of trade volumes.
The World Cup 2014 in Brazil will send trading volumes receding as it has done so traditionally.
The US and European clampdowns on high-frequency trading and collusion between investment banks' traders in the FX markets are taking its toll.
At home Singapore is seeing super low trading volume on the SGX. Plus the MAS is planning to introduce deleveraging for FX.
It all looks rather bleak.
We really need some volatility in the markets soon.
Where will it come from?
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