Today (February 11) early morning, as the Japanese financial market was closed due to the founding of the country, Chinese investors just finished the Spring Festival holiday, and the foreign exchange market once again performed a “dawn killing” in Asia, and this time the “leading role” Then it is the turn of the Swiss franc!
According to the market data, the Swiss franc was flashing at about 6:03, and the market crashed nearly 100 points in 10 minutes. The US dollar against the Swiss franc rose from 1.0000 to 1.0100. Then the Swiss franc quickly recovered its decline and returned to the near-price barrier against the dollar. .
Not only is the straight, the Swiss franc crosses also fluctuated in the same period of time.
In response, Bloomberg quoted traders as saying that the reason for the flash crash was that traders used the lack of liquidity in the morning market and sold the Swiss franc against the US dollar, euro and yen positions and triggered a series of stop losses. plate.
Financial website FxstreetAnalystAnil Panchal said that during the Asian trading hours, the Swiss franc was flashing, and the US dollar against the Swiss franc rose 0.9% to 1.0096, then quickly fell back. This situation was not caused by fundamental news or technical operations. It was due to the lack of liquidity in the Asian market during the early trading hours. In addition, Japan was closed, and some traders used the opportunity to perform stop-loss operations. It should be noted that such large fluctuations generally reverse the current gains or losses in a short period of time.
In fact, the foreign exchange market experienced sharp fluctuations in the Asian dawn, and it happened once in the beginning of this year. Just one month before the New Year's Day, the second trading day (January 3), it was also the main time in Asia.currencyIn the case of "flash crash": USD/JPY plunged more than 400 points in short-term, and GBP/USD and AUD/USD also plunged hundreds of points. Part of the reason for this situation is that Japan is closed. Since Japan is closed for holidays, the lower than usual volume has triggered a series of wild exchange rate fluctuations.
First, the day after the New Year's Day holiday, followed by the next day of the Spring Festival holiday, and coincided with the Japanese vacation. For many foreign exchange investors who did not close the position before the holiday, perhaps "have gone back in the ghost gate before they woke up."
For today's Swiss francs, the industry believes that despite the urgency of the market, it is not too big compared to the flash crash in January, so it will not have much impact on the broker.
The "Yen Avalanche" on January 3 caused Japanese brokers to fall into a dilemma. Although not as serious as the 2015 CHF Black Swan event, these Japanese STP brokers suffered a total loss of approximately $8.6 million.
(Article source: Global Forex Network)