FX traders exercise caution
They note liquidity continues to be patchy, with counterparty risk exacerbated further by the collapse of the major banks in Iceland last week.
Dealers report the focus has been on helping clients out of toxic foreign investments, as global stock markets spiral further downwards. Banks have also been supporting market-makers liquidating foreign stock posted as collateral by defaulting traders.
"I would rather wait for customer deals than interbank deals," said one London-based foreign exchange
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