Pound plunges 6.1% in biggest drop since Brexit Result

[Lucky Luciano]

Source: Bloomberg

The pound plunged as much as 6.1 percent in early Asian trading, the biggest decline since the day the U.K.’s Brexit referendum result was announced, to a fresh 31-year low.
Sterling touched $1.1841, the lowest since March 1985, and was 1.4 percent weaker at $1.2443 at 9:04 a.m. in Tokyo from the close in New York. It dropped as much as 6.5 percent versus the euro and was down 1.3 percent at 89.51 pence per euro. Traders struggled to immediately pinpoint a reason for the plunge.

“It’s a timeslot where you often see sudden moves, but it looks like there were moves to cut losses,” said Tomoichiro Kubota, a senior analyst at Matsui Securities Co. in Tokyo. There were no major new fundamental changes, but “it looks like there was selling that honed in on a time of day when there’s lower liquidity”

The drop in the pound versus the dollar could be due to an erroneous order and
flows related to stop-loss orders or options, given dollar-yen or euro-dollar aren’t moving much, according to Toshihiko Sakai, Tokyo-based chief manager of foreign-exchange and financial products trading at Mitsubishi UFJ Trust & Banking Corp.

Read more: http://www.bloomberg.com/news/articles/2016-10-06/pound-plunges-6-1-percent-in-biggest-drop-since-brexit-result

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Hollande talking tough on a hard Brexit after May set a date to invoke Article 50 by March.

[Dawson Leery]

1. They voted the wrong way, this is what happens.

[MADem]

2. Sounds like it's past time for a trip over the pond.....

From an American perspective, that's the best rate I've seen in a long, long time! Once they pull the trigger on Article 50 it will probably bump down another bit....

[saidsimplesimon]

3. Please, Mr. Soros

Before you take profit from the fall/fail, consider we ignorants.

[elmac]

4. Interesting

I noticed the drop an hour ago, may be a trading opportunity via ETF. Its making the exporters happy but imports are another story. In the long run it isn't going to be good for the consumer.

[BigDemVoter]

5. Hmmmm. I remember them receiving a kind of big warning about this before they

voted. I guess they didn't believe it. Reminds me of Trump supporters.

[Wellstone ruled]

6. What can one say other than WOW.

The Conservative Nobs in Britain are now seeing what isolationism is going to look like. Good luck with that Eighteenth Century Idea. What is important to watch is,how will NATO respond. Funds are funds and with the Pound headed for the toilet,this is going to rub other members raw.

Amazing the similarities and Methodology of Brexit and Trumps Campaign. Failure personified.

[saidsimplesimon]

7. Insanity rules?

People operating againist their own self interests? Words

[BlueWarrior]

8. What did they expect?

I am no economist, but even I saw this coming a mile away

[Sen. Walter Sobchak]

9. Sigh...

Confident that May wasn't insane enough to do this I booked a ten day stay at a central London hotel a few weeks ago. I dread to contemplate what the Pound will be worth come Thanksgiving.

[whatthehey]

14. Hey from your POV this is good

The USD you take will buy you more GBP to spend.

[Sen. Walter Sobchak]

15. I should have waited to book the hotel

[regnaD kciN]

10. Probably had a lot to do with the Tory Party Conference…

…where they pretty much went full UKIP.

[Foggyhill]

11. Yep, beat up foreigners for fun and they'll notice

[MowCowWhoHow III]

13. Trading bots gone wild

Flash crash sees the pound gyrate in Asian trading

The pound has dived on Asian markets with automated trading being blamed for the volatility.

At one stage it fell as much as 6% to $1.1841 - the biggest move since the Brexit vote - before recovering to $1.24, still down 1.5%.

It is not clear what triggered the sudden sell-off. Analysts say it could have been automated trading systems reacting to a news report.

The Bank of England said it was "looking into" the flash crash.

http://www.bbc.co.uk/news/business-37582150