Question
Suppose you see five banks quoting EUR against USD, as follows: Citibank USD/EUR 1.3450-52 Bank of America USDfEUR 1.3450-52 Continental Bank USD/EUR 1.345.1-53 Deutsche Bank
Suppose you see five banks quoting EUR against USD, as follows:
Citibank USD/EUR 1.3450-52
Bank of America USDfEUR 1.3450-52
Continental Bank USD/EUR 1.345.1-53
Deutsche Bank USD/EUR 1.3450-52
Banca da Roma USD/EUR 1.3449-51
a)Which bank(s) is (are) keen on buying EUR? Keen on selling EUR? Not interested in dealing?
b)Why does Continental rise both its bid and its ask, rather than just its bid?
c) If we would look at these banks' quotes every five minutes, do we always expect to see the same pattern, i.e. Continental quoting higher and Roma lower than the majority?
(Please provide detailed answer)
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