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Flash crash 'triggered by algorithm' drags pound lower
Source: BBC
Flash crash 'triggered by algorithm' drags pound lower
7 October 2016 Business
The British pound has plunged in Asian trade, hitting a new 31-year low against the US dollar as traders speculate about a possible trigger.
It fell more than 6% at one point to $1.1841 before recovering to $1.23, still 1.5% down from late US levels.
Analysts say an algorithm reacting to a news report was the possible trigger for the sudden tumble.
The pound has seen renewed pressure since the UK government said Brexit talks would start next March.
"It's difficult to know exactly what triggered it," Angus Nicholson, market analyst with IG in Melbourne told the BBC.
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7 October 2016 Business
The British pound has plunged in Asian trade, hitting a new 31-year low against the US dollar as traders speculate about a possible trigger.
It fell more than 6% at one point to $1.1841 before recovering to $1.23, still 1.5% down from late US levels.
Analysts say an algorithm reacting to a news report was the possible trigger for the sudden tumble.
The pound has seen renewed pressure since the UK government said Brexit talks would start next March.
"It's difficult to know exactly what triggered it," Angus Nicholson, market analyst with IG in Melbourne told the BBC.
[font size=1]-snip-[/font]
Read more: http://www.bbc.com/news/business-37582150