Cable GBPUSD plunged 6.1% overnight, the biggest intraday fall for the pair since the end of June.
Cable fell to a low of 1.1841 according to news sources overnight, a move probably made worse by thin liquidity in Asian trading; the pair retraced back to within 1.5% of the earlier close. Speculation included a ‘fat finger’ trading error and algorithmic trading that triggered large volume algos in other trading houses. This was cable’s lowest level since May ’85 and the largest intraday move since Brexit. EuroGBP also weakened, ending the session at new lows for the month.
GBPUSD currently sits at 1.2455 with GBPEUR at 1.1205.