FYI: Those sleepy Asian investors who are still on holiday must have woke up to quite a shock on Thursday. In just seven minutes, the Japanese yen soared 8 per cent against the Australian dollar, a favourite proxy of the Chinese economy. Versus the Turkish lira, it surged a whopping 10 per cent. The yen also swung against the US dollar, strengthening nearly 4 per cent.
In the aftermath, many have pinned the blame on mounting worries about Chinese growth, on the back of a profit warning from Apple, and a disproportionate number of investors betting the dollar would appreciate versus the yen. But in actuality, the violent gyrations have a lot more to do with thin early-January trading.
Regards,
Ted
https://ftalphaville.ft.com/2019/01/03/1546528502000/What-drove-Thursday-s--flash-crash--/
Comments
Derf