The yen rallied overnight, while the Aussie tumbled as very thin liquidity conditions resulted in a foreign exchange ‘flash crash’. The catalyst may have been reports by Apple Inc., which cut its revenue forecasts mainly due to the economic deceleration in China, adding to concerns over slowing global growth.
Apple Reports Add to Investors’ Anxiety, Trigger FX ‘Flash Crash’
The dollar traded higher against most of the other G10 currencies yesterday. It underperformed only against JPY, which soared overnight, while it traded virtually unchanged against CAD. The greenback gained the most against GBP, SEK, AUD and NZD.
Following the disappointment in China’s Caixin manufacturing PMI, which was the reason for investors to start Wednesday’s Asian session, and the New Year, on a defensive note, markets continued to trade in a mild risk-off manner, with most...
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