Tuesday, August 01, 2006

From FT:

He said that in an efficient market, such seasonal anomalies should tend to be arbitraged away. “Once an anomaly becomes well known, the speculative market begins to pre-empt it,” said Mr Meggyesi.

Last week’s 1.3 per cent rise in yen/dollar may have been the pre-emption, and Tuesday’s fall a dose of profit-taking.

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