The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Foreign Exchange

FX comment on strange currency moves: The curse of the digits

Algos and fat fingers are getting the blame this week for some strange moves. While both blips were unsettling, they were also rapidly retraced.


A hiccup in EUR/SEK was first. It happened at 6.43am London time on Tuesday; very little appears to have gone through and the price immediately returned to the 9.50 area after a brief excursion to 8.1600. As that is where EUR/NOK was trading at the time, it seems a fair guess that some bleary-eyed trader unfortunately hit the wrong cross. A painful way to wake up.


The second error created much more chatter, though no one seemed to know whether the driver was cable or EUR/GBP.


Just before 8 on Wednesday morning, cable got sold off from above 1.5300 to below 1.5200 in a matter of seconds, but was back to 1.5300 half an hour later. And then it spent the rest of the day selling off again to settle comfortably at the morning’s low. It really is a funny old game.


‘Algo error’ was a favourite rationalization for the cable wobble. But there were other, more amusing explanations around, including one that traders had seen a Bank of England announcement of the seven-day USD repo and had interpreted it somehow as saying that the Old Lady was going to open a dollar swap facility with the Federal Reserve.





You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree