The pound was caught between a rock and a Hard Brexit, and the accident waiting to happen did eventually happen. GBP/USD plunged under 1.20 before bouncing back, but the story is far from over, as there are good reasons to see this pound pressure continue. It is not only low liquidity, thin trading volume or a fat finger that broke the back of Britain’s currency.
This page features every related update: from the background, through the various warnings, and through the aftermath. Note that pound crosses may react quite differently to this event. All the updates are right here:
- Oct 17, 17:18: GBP: Moving Towards A ‘Hard Brexit’; Stay Short For 1.20 & Sell Any Rallies – Nomura: GBP/USD remains under intense pressure even as EUR/USD manages to stage a recovery of sorts. Are more falls coming? Here...
- Oct 14, 14:20: 5 Reasons Why Sterling Could Fall By Add’l 7% In 2 Months – Goldman Sachs: While the pound lifted itself after the big flash crash, it remains vulnerable. The team at Goldman Sachs sees big...
- Oct 13, 8:24: GBP: Calibrating The Current GBP Decline; What’s Next? – BofA Merrill: The pound remains under pressure after the big flash crash. The team at Bank of America Merrill Lunch analyzes the next...
- Oct 13, 0:52: GBP/USD – Is the correction over?: The first debate in the British Parliament came and went and perhaps the correction in GBP/USD followed. Cable is hanging around...
- Oct 13, 0:49: EUR/USD knocking on the gates of 1.10, and it’s not euro-related: EUR/USD has awakened. The world’s most popular currency pair did not turn into the pound or to a significant mover, but it has...
- Oct 11, 19:44: Trading the flash crash and shifting to shorter duration charts: Friday’s flash crash in Cable was followed by an intense speculation of what must have caused it, and amid the...
- Oct 11, 16:28: GBP/USD Flash Crash Infographic: In the aftermath of the flash-crash, I believe that it is incredibly relevant to give a more detailed story of...
- Oct 10, 16:38: Reasons for the Pound fall are real, pressure remains to the downside: In an interview with FXStreet, we talked about the crash in the pound, the strength of the US dollar, the...
- Oct 8, 2:48: GBP: 4 Reasons Why Risk-Reward Not Attractive In Chasing GBP Lower From Here – BNPP: The pound’s flash crash eventually ended in a significant downfall, as cable closes the week at the 1.24 handle. What’s next?...
- Oct 7, 13:42: After GBP, 5 Scenarios For A Sudden Big Drop In EUR/USD – Credit Suisse: After the monumental flash crash of the pound, other currencies can get carried away. The team at Credit Suisse lays out...
- Oct 7, 3:43: GBP/JPY dips under 125 – why there is more to come: Talk of a Hard Brexit weighed heavily on the British pound – a quicker, nastier exit of the European Union with less...
- Oct 7, 3:27: EUR/GBP > 0.90 on pound crash – why this will NOT last: The British pound was stuck between a rock and a hard Brexit. GBP/USD had already slipped to the lowest levels in 31...
- Oct 7, 2:35: How Much Sterling Downside Ahead And Why? – Goldman Sachs: The British pound flash crashed to 1.20 before bouncing to 1.24, but things are unstable, to say the least. The team...
- Oct 7, 2:27: GBP: ‘Accident Waiting To Happen’; Turning More Bearish Sterling Targeting 1.22 – Credit Suisse: Well, the team at Credit Suisse had the vision, foreseeing the GBP flash crash. Cable crashed under 1.20 before bouncing to...
- Oct 7, 1:57: GBP/USD flash crashes under 1.20, jumps back to only 1.24: Thin liquidity + big downside pressure = flash crash. The British pound collapsed after the end of the US session and...
- Oct 6, 14:59: We Stay Bearish Sterling as Hard Brexit Has Become A ‘Meaningful Risk – Deutsche Bank: GBP/USD has reached new lows at 1.2633 as the free-fall continues. What’s next? The team at Deutsche Bank sees further...
- Oct 4, 20:25: GBP/USD has more room to the downside – 3 opinions: The British pound has reached new 31-year lows against the US dollar. But this may not be over. Here are 3...
