Cable’s “Flash Jump”

Adam Lemon

As New York was getting ready to open today into a relatively quiet Monday’s market, the GBP / USD currency pair, one of the world’s major Forex currency pairs, rose by almost 100 pips in value in a matter of seconds. That equates to about 0.80%.

This very sharp and sudden rise was not triggered by any obvious news event or public piece of information.

By the standards of a “flash crash”, the movement was relatively small. Whether it was a true “flash crash” remains to be seen. It is worth noting that the last flash crash was also in this same currency pair and occurred only last month.

Some will see this as a sign that despite its enormous volume, the growth of high-frequency trading and black box algorithms within the Forex markets may be making the market more unstable and prone to sudden inexplicable movements in price.

British Pound

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.