Sterling Sent into Flash Crash Oblivion by ‘Liquidity Bubble’
- Cable tanked below 1.19 for the first time since May 1985, EUR/GBP highest since October 2009.
The British pound sterling was just sent into oblivion once again as commentators are pointing towards some comments from French President Francois Hollande on ‘hard Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term’. The bottom fell out from the market as sterling traders headed for the exits.
Commenting to Finance Magnates, the Managing Director of Think Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term Jeff Wilkins stated that the market has been forced lower by a liquidity bubble that caught markets off guard. From the looks of it British pound traders are stunned by the move as are some brokers.
The ‘flash crash’ has obliterated a number of traders, but some brokers could also be suffering as a result from the move. Finance Magnates is hearing about the lowest bid price ranging between 1.1644 for some market makers to 1.1915-90 for straight through processing (STP) brokers. At a later stage this estimate changed from below 1.1000 to above 1.2000.
Brits looking at their wallet.... #GBP $GBPUSD $EURGBP pic.twitter.com/OVytFGdoAm
— RANsquawk (@RANsquawk) October 6, 2016
According to a report by Bloomberg, algorithmic traders are to blame for the sharp drop, exacerbating the effects from an article published by the Financial Times, where French President Francois Hollande commented on the commitment of UK authorities to a ‘hard Brexit’.
Market chatter doesn’t suggest dramatic implications, but some brokers are surely to be flooded with client enquiries since the discrepancies about the low point in sterling this morning.
The official print that Reuters reports is 1.1840. The CEO of Intermarket Strategy, Ashraf Laidi has dismissed a 'fat finger' trade in an interview with CNBC.
The British pound sterling was just sent into oblivion once again as commentators are pointing towards some comments from French President Francois Hollande on ‘hard Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term’. The bottom fell out from the market as sterling traders headed for the exits.
Commenting to Finance Magnates, the Managing Director of Think Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term Jeff Wilkins stated that the market has been forced lower by a liquidity bubble that caught markets off guard. From the looks of it British pound traders are stunned by the move as are some brokers.
The ‘flash crash’ has obliterated a number of traders, but some brokers could also be suffering as a result from the move. Finance Magnates is hearing about the lowest bid price ranging between 1.1644 for some market makers to 1.1915-90 for straight through processing (STP) brokers. At a later stage this estimate changed from below 1.1000 to above 1.2000.
Brits looking at their wallet.... #GBP $GBPUSD $EURGBP pic.twitter.com/OVytFGdoAm
— RANsquawk (@RANsquawk) October 6, 2016
According to a report by Bloomberg, algorithmic traders are to blame for the sharp drop, exacerbating the effects from an article published by the Financial Times, where French President Francois Hollande commented on the commitment of UK authorities to a ‘hard Brexit’.
Market chatter doesn’t suggest dramatic implications, but some brokers are surely to be flooded with client enquiries since the discrepancies about the low point in sterling this morning.
The official print that Reuters reports is 1.1840. The CEO of Intermarket Strategy, Ashraf Laidi has dismissed a 'fat finger' trade in an interview with CNBC.