A flashing GBP crash

An hard night for the sterling which have seen during the night an heavy drop against its main peers such as USD, EUR and JPY.

Starting from the Cable, the 6% drop started a few moments before the Tokyo opening, after market speculations about the French President Hollande which point the finger against the hard Brexit. In the meantime it seems that something has happened: there has been a fat finger, that is an error from an investor on the market which have consequently misguided the Algo, pushing them to collaborate at the collapse of the GBP/USD.

cable-7oct

The collapse pushes the price from almost 1.2615 to a multi-decade minimum @ 1.1841 in few minutes, before recover almost 6 big figures and trading at 1.2457 (-1,25%) at the time of writing.

It is not excluded however, a new Cable sell-off in the opening of the European session.

Similar situation against the Japanese Yen, with the GBP/JPY which recovered almost 62% of the total drop seen during the night.

gbp-jpy-7oct

The unexpected drop led the cross to a minimum of 122.90, while at the time of writing the losses are almost 1.34% with a trading price of 129.36.

GBP losses even against the Euro, which this time pushed higher the EUR/GBP cross, with a spike which led to a max of 0,9270 during the night and at the time of writing the cross is still 0,91% positive @ 0,8919.

eur-gbp-7oct

Today will be a day full of events with the UK industrial production (expected @1.3% against a previous 2,1%) and the UK trade balance.

Something that will add volatility to the markets will be the US non-farm payrolls, which could boost the USD rally against the majors.

 

 

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