19th May 2017-Mini flash crash in GBP just after the European close as volatility remains elevated

Daily News

 
     

 

Mini flash crash in GBP just after the European close as volatility remains elevated

After another slide in risk appetite ahead of the US open, conditions more stable during the New York session with some calming of the immediate political frenzy surrounding President Trump and the US Administration. Global equity markets stabilised with US indices and the dollar able to secure a limited net recovery.

Overall demand for defensive assets faded slightly with gold and the yen losing some degree of support. There were still important underlying tensions amid fears that fresh turbulence could erupt at any moment and uncertainty whether equity-market gains were a brief correction ahead of further losses or indicative that buyers had regained control.

Sterling gained support from strong retail sales data, although there was a mini flash crash just after the European close as volatility remained a key focus.

The UK retails data was much stronger than expected with a 2.3% increase in volumes for April compared with consensus forecasts of a 1.0% gain to give a 4.0% year-on-year gain.  Sales were boosted by the late Easter and favourable weather conditions and there were still market expectations that underlying spending would slow.

The data did however, trigger fresh Sterling buying with GBP/USD breaking above 1.3000 for the first time in close to 8 months.

There was no significant impact from the Conservative Party manifesto, although the loosening of medium-term fiscal policy could increase the potential for an earlier than expected increase in interest rates.

Sterling held strong into the European close, but Sterling then declined sharply in a mini flash-crash with GBP/USD dipping to below 1.2900 before recovering ground to 1.2950.  

 

     
 
       
 

GBP/EUR 

– 1.1642

 
 

GBP/USD 

– 1.2953

 
 

GBP/CHF 

– 1.2690

 
 

GBP/JPY 

– 144.06

 
 

GBP/AUD 

– 1.7422

 
 

GBP/NZD 

– 1.8794

 
 

GBP/CAD 

– 1.7609

 
 

GBP/ZAR 

– 17.2344

 
 

GBP/NOK 

– 10.9482

 
 

GBP/SEK 

– 11.3790

 
 

EUR/USD 

– 1.1125

 
       
  All rates are indicative of interbank rates*  
       
 
 

GBP/EUR 

 
 

GBP/USD 

 
 

EUR/USD 

 
       
 
   

07:00 EUR

EUR German PPI (Y/Y)

3.20%

3.10%

 
   

11:00 EUR

GBP CBI Industrial Trends Orders 

-

4

 
   

13:30 CAD

CAD CPI (Y/Y)

-

1.60%

 
   

14:15 USD

FOMC Member J. Bullard Speaks

-

-

 
 
   
 
 
*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time.  CentralFX are not responsible for the rates shown.
 
 
 

Sign up to our newsletter

  1. Please tell us your name(*)
    Please use only alpha-numeric characters
    Please use only alpha-numeric characters
  2. Your Email(*)
    Please let us know your email address.
  3. Business / Personal(*)
    Invalid Input
  4. Please tell us a telephone number you can be contacted on(*)
    Please use only numbers and hyphens

Get in touch

CentralFX

3 Lloyds Avenue
London, EC3N 3DS

+44 (0) 20 7265 7979

info@centralfx.co.uk

We trade currency here. You can trade currencies too. Why not try our currency calculator and use our currency chart and currency economic calculator. Currency is everything here.We trade currency here. You can trade currencies too. Why not try our currency calculator and use our currency chart and currency economic calculator. Currency is everything here.We trade currency here. You can trade currencies too. Why not try our currency calculator and use our currency chart and currency economic calculator. Currency is everything here.

.We trade well business here. You can trade business too. Why not try our with business and use our business chart and business economic. business is business here.

We use well business use here. You can trade with great use. Why not use our with use and use our business chart and use economic. business us business use.We use well business use here. You can trade with great use. Why not use our with use and use our business chart and use economic. business us business use.We use well business use here..

Why not trade with our trade and use our trade chart and trade economic.You can trade as we trade too. Why not trade with our trade and use our trade chart and trade economic. trade is trade here.We trade well trade here. You can trade as we trade too. Why not trade with our trade and use our trade chart and trade economic. trade is trade here

.We centralfx well centralfx here. You can centralfx as we centralfx too. Why not trade with centralfx our centralfx and use our centralfx chart and centralfx economic. centralfx is centralfx here.We centralfx well centralfx here. You can centralfx as we centralfx too.