Three Theories on the FX Flash Crash: Robots, Apple, Yen Shorts
- Currency market’s witching hour exacerbated the gyrations
- USD/JPY fell by the most since 2016 U.S. presidential election
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Traders and strategists are still attempting to identify the triggers for Thursday’s flash crash in the $5.1 trillion-a-day foreign-exchange market.
The yen surged nearly 4 percent against the dollar in a span of minutes in early Asian trading, the largest swing in the pair since the 2016 U.S. presidential election. The Japanese currency also rallied aggressively against the Australian dollar, briefly bursting through the 72 level that has held through a trade war, a stock rout, Italy’s budget dispute and Federal Reserve rate hikes.