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Flash Crash of the Pound Baffles Traders With Algorithms Being Blamed

Posted by Chris Advincula on Oct 7, 2016 6:59:06 AM

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(Oct 7 Bloomberg) Two minutes of chaos in Asian trading sparked the biggest plunge in the pound since the Brexit referendum, with traders saying the slump was exacerbated by computer-initiated orders.

The 6.1 percent drop drove sterling to a 31-year low of 1.1841, according to composite prices compiled by Bloomberg of contributors from dealers. With the currency already in a freefall amid concern a so-called hard Brexit is on its way. Friday's slide took it to the weakest level since 1985. At least one electronic trading platform recorded a transaction at $1.1378, said traders, who asked not to be identified because they're not allowed to speak publicly.

Click on the link below to see the full story from Bloomberg: (by Netty Idayu Ismail and Lananh Nguyen)

Flash Crash of the Pound Baffles Traders With Algorithms Being Blamed

Topics: GBPUSD, Forex, Sterling, Fundamentals, BREXIT

 

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