The USD-CHF, Dollar/Swiss Franc pair, experiences a flash crash in early Asia trading on 2/11/19. The Dollar/Swissy pair surges over 110 pips (1 big figure) but recovers in short order. This action represents a weaker franc. The US dollar index climbs to 96.71.
So much for the Swis franc safe haven.The flash crash is blamed on low liquidity conditions. These events do happen time to time in thin trading especially on a Monday morning and Japan markets are not trading. The SNB would likely not intervene unless the franc weakened past the 1.03-1.04 area, if needed.
The sharp flash crash is dubbed a fat finger event in low liquidity markets. It creates instant joy, or misery, depending on what side of the trade you are on. Stops are hit. There are winners and losers every day in the big city. The flash crashes in stocks, indexes, Forex and bonds continue. Authorities keep sweeping the market flash crashes, computer glitches and fat fingers under the rug but the carpet has a big bulge now. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
NOTE: Chart is courtesy of Daily Fx and annotated by Keystone.
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