[Merged]Brexit stuff

[jamesbrown]

It was definitely an error. They will identify where at some point.

What is interesting was support at 1.18. It may reach that at some point.

Yes, no question it was an error, but that Hollande commentary could've been a factor, as they were minutes apart, and these algos do sweep the news wires. Either way, definitely an error. Inevitably, that has spooked the markets, so Cable is still trading much lower. US jobs later, so more illiquid than usual.

[BlasterBates]

It was definitely an error. They will identify where at some point.

.

That looks increasingly doubtful, looks like liquidity in the market dried out temporarily.

This morning is bearing that out.

[GB9]

That looks increasingly doubtful, looks like liquidity in the market dried out temporarily.

This morning is bearing that out.

It would dry out as it was between the standard trading hours of the US and Asia. It wouldn't take much to move at that time.

[BlasterBates]

https://www.fxstreet.com/news/gbp-us...a-201610070848

The cable remains under heavy selling pressure, with weaker-than expected UK industrial and manufacturing production

hmm....

[GB9]

https://www.fxstreet.com/news/gbp-us...a-201610070848



hmm....

As I said, I wouldn't be surprised to see it hit 1.18 in coming sessions.

[jamesbrown]

That looks increasingly doubtful, looks like liquidity in the market dried out temporarily.

This morning is bearing that out.

No, it really isn't. This is a classic algo error into an illiquid market, only on steroids. Obviously, that impacts real trading for hours or even days afterwards. We'll see who was right in due course as the BoE has launched an investigation.

Industrial and manufacturing production

[The_Equalizer]

No, it really isn't. This is a classic algo error into an illiquid market, only on steroids. Obviously, that impacts real trading for hours or even days afterwards. We'll see who was right in due course as the BoE has launched an investigation.

Industrial and manufacturing production

I've seen this happen to equities before. A classic was a small AIM listed firm Rockhopper Exploration which - in 2010 - went from about 240 to 62 back to 220 in the space of 90 minutes.

[BlasterBates]

No, it really isn't. This is a classic algo error into an illiquid market, only on steroids. Obviously, that impacts real trading for hours or even days afterwards. We'll see who was right in due course as the BoE has launched an investigation.

Industrial and manufacturing production

That's adding to the weakness today, Hard Brexit, Hollande's comments and disappointing manufacturing and production data.

Tory ministers not looking so clever now.

[jamesbrown]

I've seen this happen to equities before. A classic was a small AIM listed firm Rockhopper Exploration which - in 2010 - went from about 240 to 62 back to 220 in the space of 90 minutes.

Yes, it happens in equities too, even in share indexes. You may recall Flash Boys by Michael Lewis.

[jamesbrown]

That's adding to the weakness today, Hard Brexit, Hollande's comments and disappointing manufacturing and production data.

Tory ministers not looking so clever now.

Sure, but all of that is a sideshow. I expect Hollande was a trigger, but the fundamental cause will be a cascade of algo trades. Now the market is spooked. Ordinarily, those very minor misses on ind/manu production would have a trading range of 0.5-1c max.