I was just about to close shop for the day and instead ended up having a conversation with a good friend of the site.  We discussed quite a few things that happened today, and most of them are highlighted on this chart.  I put this together for the mere means of trying to visually explain what we discussed, and thought it might be useful to others. I mentioned a few of these items on Twitter, but with 140 characters at my disposal at any point in time, further explanation is needed.  It mainly speaks for itself, but a few points:

-Dealers make money by: 1. their own speculative trading and 2. customer turnover

-Dealers dig zero inventories (flat exposure) when it comes to FX. You won't find them warehousing EUR/USD for a few weeks unless you're on the prop desk (or on a “strategic client hedging” plan, like some retail aggregators)

-There is always an intent to fill client offers and bids, and once they have it, it is off to someone else

This is the last post during the Thanksgiving break and will see you next week.  Enjoy: