Share
Just a thought...
On the gap trades yesterday, I took a trade on the GBPAUD for the first time...
While watching the pair fluctuate, it occurred to me that there may be an "arbitrage" opportunity on this and the EURUSD pair.
Now this is just early thoughts at the moment but here is the gist of my "thinking"
The European currency markets are generally quietening down by the time the sun comes up in our southern hemisphere and Asian Pacific locale.
Once the morning comes around here, "our" currencies.. AUD JPY become "active" as attention in the financial markets turns to the "live" indicies (daytime) in our region... HangSeng, Nikkei, XJO...
It is my contention that during this time fluctuations in the "local" currencies will be greater than in the European...
So the idea is to try to arbitrage... make use of greater fluctuations here, for instance AUD v USD with the "belief" that the locals (asian pacific) will move faster against the USD (for example) than the Europeans.
Thereby giving the potential to capitalise on the faster/greater movements locally, til europe wakes up by arbitraging through cross currencies... eg eurAUD and GBPAUD.
I ain't worked out a plan yet nor checked the efficacy of trying to "arb" trade... but was wondering if anyone else had thought of this or had any input on the idea...
;)
