Forex Spreads

I noticed in IB this morning that spreads seem wider than normal. For example, AUD.CAD is 2-3 pips versus 1 normally and EUR.USD is 2 pips versus 1 normally.

Is anyone noticing this with other brokers? If not, perhaps IB has lost one or more of their participating banks.

 

Oanda's normal 0.9 pips on EURUSD has been 1.2 over the last few days.

 

I think what you are seeing is overall market caution. On Hotspot, I usually see .5-1, but today it's more like 1, 1.5, 2 on the EURUSD and 3-4 on AUS and NZD. Probably has something to do with LEH.

 

Thanks. Glad I'm not seeing things. We'll watch for next few days and expect to see shrinkage in spread.

 

Someone from Oanda posted this on their message boards this morning:



I had been wondering this myself.

 

They will tell you anything....

 

Saw the same thing on Barx with a research note to clients saying more or less the same thing, seems like a typical thin (and therefore more volatile) market where traders are playing safe and staying on the sidelines for now, I'm surprised the carry trade hasn't unwound more than it did.

Some of us are crazy enough to just plough on regardless though, including me

 

Oanda's EUR/USD spread is back to 0.9 for the first time in weeks.