Forex news for US trading on October 7, 2016
It is not often that the US employment report is overshadowed by anything. However, a flash crash – led by the GBPUSD – was the story of the day. That pair fell as low as 1.1491 according to Thomson Reuters. Yesterday, the GBPUSD closed at 1.26129. That is a decline of 1122 pips. On a 1 lot position of $100,000, that equals a change of $11,210. The move down took less than 5 minutes. The snap back rally to the corrective peak at the 1.2480 level (or 991 pips) took 75 minutes to complete. What is that 991 pips worth in dollar terms? $9,910 per lot. That is a lot a volatility in a little over an hour.
Forexlive Americas FX news wrap: US employment report comes up short, but the pound is the bigger story
