BLOOMBERG.COM
During two chaotic minutes of Asian trading, the pound plunged the most since the Brexit referendum in June, with traders saying computer-initiated sell orders exacerbated the slump. The 6.1 percent drop drove sterling to a 31-year low of $1.1841, according to composite prices compiled by Bloomberg of contributions from dealers. Traders speculated the crash might have been sparked by human error, or a so-called “fat finger,” with algorithms adding to selling pressure at a time of day when liquidity is relatively low. While the currency snapped back in Asia, it resumed its freefall during European hours, as concern welled up that a so-called hard Brexit is on its way, meaning the U.K. will get anything but a sweetheart deal to leave the European Union.
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During two chaotic minutes of Asian trading, the pound plunged the most since the Brexit referendum in June, with traders saying computer-initiated sell orders exacerbated the slump. The 6.1 percent drop drove sterling to a 31-year low of $1.1841, according to composite prices compiled by Bloomberg of contributions from dealers. Traders speculated the crash might have been sparked by human error, or a so-called “fat finger,” with algorithms adding to selling pressure at a time of day when liquidity is relatively low. While the currency snapped back in Asia, it resumed its freefall during European hours, as concern welled up that a so-called hard Brexit is on its way, meaning the U.K. will get anything but a sweetheart deal to leave the European Union.
Read more>