The pound experienced the strongest drop after the referendum on Brexit


The pound against the dollar in currency trading in Tokyo on Friday morning in two minutes fell by 6.1%, showing the strongest decline since the June referendum in which the British people voted for the country’s withdrawal from the European Union, according to Bloomberg.

At a minimum the rate reached $1,1841 a pound — so cheap, the pound was not worth since March 1985. Later the dynamics changed a bit: according to 10:10 GMT, the pound was worth $1,2437, losing in the price of 1.42%.

At least one electronic trading platform on Friday morning recorded the purchase pounds at the rate of $1,1378 apiece, says Bloomberg, citing traders, who wished to remain anonymous. Reuters writes that on some commercial sites the pound for a few seconds, lost about 10% of the cost falling from the $1,2600 to $1,1378.

Bloomberg called the incident “the two minutes of chaos” and noted, with reference to the interviewed traders, the situation could worsen for the contracts trading robots.

Earlier, French President Francois Hollande said that the EU must maintain a firm stance against the UK after the Prime Minister of the Kingdom Theresa may has promised to start the procedure of “divorce” with the EU by March 2017. Forex Club senior analyst, Alena Afanasyeva admitted that the words Hollande, who said that Britain must keep “hard” negotiations on withdrawal from the EU, accelerated the fall of the British currency.

Trigger reduction were the words of françois Hollande about the fact that Brussels has expressed a tough stance against London in the negotiations on Brexit, agrees managing Director of Nord Capital Michael Khans.

“According to rumors, the reason for that large erroneous trades on sale, which pulled all the stops on the way down in a very illiquid Asian market”, – said Afanasiev. In addition, the time of the incident raises many questions, she added. “Between the closing of the American market and the opening of Tokyo always celebrated low liquidity, and it is at this point worked a major deal. It even inspired talk of a “hand of Soros”, which was once the pound dropped, correctly selecting the appropriate time,” said the analyst.

According to the khans, after the pound of all levels of technical support trading robots operating on the basis of inherent in them algorithms, have dramatically increased sales of the currency.

“Time “failure” 2.07 MSK, that is, active trading in futures began only in Australia and New Zealand for the past week, the pound showed decline, and, as a result of the action trading robot, which all support”, — he said.

On 4 October, the pound fell against the dollar to $1,2737 dollar per pound, and a day later on 5 October, the pound sterling to the Euro fell to a five-year low. In July 2016, Bloomberg experts acknowledged the pound sterling is the worst currency in the world, noting its strongest since the beginning of the fall against the dollar.

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