On the first trading day after the Spring Festival holiday, the foreign exchange market has once again changed. In the opening period of extremely low liquidity, the exchange rate shows that the Swiss franc has abnormal fluctuations. Among them, the US dollar against the Swiss franc once rose 0.9% to approach 1.01, and then quickly fell back to the 0.9990 line. On the cross, Ori Rui/Swiss also showed ups and downs, and there were more than 100 points in a short period of time.
Bloomberg cited a trader's analysis and pointed out that the trend of the Swiss franc was due to the fact that traders used the early market liquidity to sell the Swiss franc and triggered a number of stop-loss orders, resulting in a roller coaster market in a short period of time.
In fact, the liquidity problem in the foreign exchange market is nothing new, although the foreign exchange market has traditionally been considered to be the largest trading market outside the national debt market.
On October 7, 2016, the pound against the US dollar also had the biggest drop of 700 points in the morning, second only to the referendum day. After a short period of plunge, the exchange rate regained most of the decline in a few minutes.
On January 15, 2015, the Swiss National Bank unexpectedly announced the decoupling of the linked exchange rate between the euro and the Swiss franc, causing the euro against the Swiss franc to plunge nearly 30% in just ten minutes, and collapsed from around 1.2010 to around 0.8517. Due to the large market, many foreign exchange brokers have been temporarily suspended. Many well-known investment banks have suffered a lot. This is also the famous Swiss Franc swan event.
On August 24, 2015, the New Zealand dollar against the US dollar due to lack of liquidity, almost led to the lack of the number of opponents, and instantly fell about 6.6%.
Of course, the same problem,Precious metalThe market is also not free. On November 30, 2014 (Sunday), the Swiss gold referendum, on the morning of Monday, silver plunged more than 7% in the absence of liquidity in Asia, when the biggest drop in the session was 8.7%.
The most recent foreign exchange market crash occurred in January this year. According to related reports, the volatility of the yen and the Australian dollar at the time caused many investors to break positions. In just 7 minutes, the yen rose 8% against the Australian dollar, nearly 4% against the US dollar, and double-digit gains for the “non-mainstream” Turkish lira. There have also been significant ups and downs in many other crosses.
(Article source: Gold headline)