collapse

Author Topic: British Pound crash sinks to 1984 low.  (Read 400 times)

Offline astr0144

  • The Roundtable
  • Hero Member
  • *****
  • Posts: 3980
  • Gold 307
British Pound crash sinks to 1984 low.
« on: October 07, 2016, 03:36:16 AM »
British Pound crash  sinks to 1984 low.

Just after Midnight Oct 7th... the British Pound had one of the largest declines I have ever seen...

for about 7 minutes it severely declined ..

but it reversed to re rally back up just as quickly.

yet the Stock Markets did not decline very much.. at least so far...But that may change from about 13.30 hrs later today..

'Flash crash' for pound to $1.18 is surrounded in mystery.

Quote
The pound has endured a temporary collapse in mysterious circumstances, sparking market chaos.

Having traded as low as $1.26 to the dollar on Thursday it slumped to $1.18 within minutes during Asian trading - a fall of more than 6%.

Several theories abound as to why, with no clear explanation at hand.

They include the publication of a report by the Financial Times on French president Francois Hollande demanding a tough stance on Brexit negotiations triggering a computer-generated trading algorithm.

IG Markets' analyst Angus Nicholson said it "looks like it was an algorithm-driven flash crash", adding that "given low volumes in the Asian session, it would have forced other algorithms to join in and magnify the fall."

Other possible reasons include a so-called 'fat finger' trade - human error.

The currency later went on to recover to $1.24 in jittery trading towards the end of what has been a roller coaster week for sterling in the wake of the EU referendum fallout.

Investors were spooked by confirmation that the prime minister would trigger Article 50, the official Brexit process, by March next year and comments the market saw as Britain keen to leave the European single market so the Government could tighten its grip on immigration.

The pound had been trading near $1.30 on Monday before starting its latest decline.

Its erosion in value helped lift the FTSE 100 to near its record high.

The mid-cap FTSE 250 did strike a new top level - with export-facing firms and those making dollar sales seeing the biggest individual gains on both indices.

Naeem Aslam, chief market analyst of Think Markets, warned it was likely to be a "heavy day" for trading on Friday on world currency and stock markets.

He said of the pound's dramatic decline: "What we had was insane - call it a flash crash - but the move of this magnitude really tells you how low the currency can really go.

"Hard Brexit has haunted sterling," he warned.

Yosuke Hosokawa, head of the currency sales team at Sumitomo Mitsui Trust Bank, said there could be more bloodshed to come for sterling.

"We thought today's plunge was a matter of time. Negative factors were mounting against the pound, and eventually the dam broke."

He added: "We have not seen the bottom yet. Breaking the 31-year low is now in sight."
 


https://uk.news.yahoo.com/flash-crash-pound-1-18-053800865.html

https://uk.finance.yahoo.com/news/pound-sinks-1985-low-likely-072000076.html
« Last Edit: October 07, 2016, 03:47:05 AM by astr0144 »

Offline Pimander

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 4853
  • Gold 366
Re: British Pound crash sinks to 1984 low.
« Reply #1 on: October 07, 2016, 05:15:57 AM »
'Flash crash' for pound to $1.18 is surrounded in mystery.
This is great news for British tourism and also for exporting goods.

If you like Scotch Whisky or buy our lovely bombs and other weapons then the price is set to drop.  come visit Nottingham's medieval delights and get more £££ for your money...

It makes travel abroad a bit expensive though.

Offline astr0144

  • The Roundtable
  • Hero Member
  • *****
  • Posts: 3980
  • Gold 307
Re: British Pound crash sinks to 1984 low.
« Reply #2 on: October 07, 2016, 09:37:45 AM »

Its like about 32 years since the British Pound was so low.

The BP had topped like the US / UK stock Market in Oct/Nov 2007...and declined since..

where as the US stock market re rallied after its big decline in 2007 that made a low in 2009 and rallied so far into 2016...

Now we have to get used to the Lower valued £..and how it effects us...as some things described by Pim..

Heres a chart to show what it has done since its main high made back in 1980...that was 38 yrs ago..

and it declined severely in 4 years to make a low in late 1984.....The £ v $ chart was almost back at the 1984 low at about $1.2



http://en.prothom-alo.com/contents/cache/images/643x0x1/uploads/media/2016/06/27/2bf45ddf02989d456f34399f8aea055e-Chart.jpg

 


Wal-Mart.com USA, LLC
affiliate_link
Free Click Tracking
Wal-Mart.com USA, LLC

* Recent Posts

Netherlands underground by space otter
[Today at 03:02:36 PM]


Re: fake news - live by space otter
[Today at 02:29:40 PM]


Re: Mandalay: The biggest shooting since Columbine. by ArMaP
[Today at 11:59:55 AM]


Re: Mandalay: The biggest shooting since Columbine. by petrus4
[Today at 09:25:28 AM]


Third nuke at lv shooting by robomont
[Today at 12:17:42 AM]


Re: Major Speech In China by robomont
[February 16, 2018, 06:29:51 PM]


Re: Major Speech In China by Somamech
[February 15, 2018, 10:05:19 AM]


DOG FOOD RECALL by space otter
[February 15, 2018, 07:59:28 AM]


Re: Alinsky's guide to control... by The Seeker
[February 14, 2018, 09:00:34 PM]


Re: Alinsky's guide to control... by Eighthman
[February 14, 2018, 07:41:20 PM]


Re: Alinsky's guide to control... by The Seeker
[February 14, 2018, 08:46:37 AM]


Re: Alinsky's guide to control... by petrus4
[February 14, 2018, 03:12:21 AM]


Re: Alinsky's guide to control... by The Seeker
[February 13, 2018, 07:18:42 PM]


Re: Alinsky's guide to control... by COSMO
[February 12, 2018, 11:15:27 PM]


Re: Major Speech In China by petrus4
[February 12, 2018, 08:06:05 PM]


Poll On Intelligent ET Life by Eighthman
[February 12, 2018, 06:26:50 PM]


Re: Major Speech In China by Eighthman
[February 12, 2018, 05:22:01 PM]


Re: Major Speech In China by space otter
[February 12, 2018, 11:30:43 AM]


Re: Major Speech In China by space otter
[February 12, 2018, 08:32:00 AM]


Major Speech In China by Eighthman
[February 11, 2018, 07:22:56 PM]

affiliate_link