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Pound Flash Crash Baffles Traders as Algorithms Blamed for Slump

12 pointsby tsydover 8 years ago

1 comment

zigzigzagover 8 years ago
Ah, the financial press.<p><i>&gt; With the currency already in freefall amid concern about a so-called hard Brexit, Friday’s slide took it to the weakest level since March 1985.</i><p><a href="https:&#x2F;&#x2F;finance.yahoo.com&#x2F;quote&#x2F;gbpusd=x?ltr=1" rel="nofollow">https:&#x2F;&#x2F;finance.yahoo.com&#x2F;quote&#x2F;gbpusd=x?ltr=1</a> - look at the 5 year view.<p>The currency took a sharp drop right after the vote, quite possibly as much because the BoE said they&#x27;d engage in a massive QE (money printing) program as the vote itself. Since then GBP&#x2F;USD has acting fairly normal, as in, continuing a general weakening trend that has been going on for several years now. Zooming out to the ten year view shows what an <i>actual</i> freefall looks like as the relatively huge drop from $2 down to $1.50 during the financial crisis hit. The movements of the past few days are quite small relative to that.<p>But I guess freefall sounds exciting and showing a longer term graph is not.