Euro Gets Lump of Holiday Coal, Briefly Slides Versus Dollar
While most of the world’s currency traders were off drinking eggnog, euro was left at the mercy of the algorithms.
(Bloomberg) -- While most of the world’s currency traders were off drinking eggnog, the euro was left at the mercy of the algorithms.
Early Monday morning in New York, the shared currency tumbled about 3 percent against the dollar in a matter of minutes. Given the limited Christmas Day volume, along with a lack of much market-moving news, the sudden plunge could’ve been sparked by computer-driven trading -- a suspicion touted by the ZeroHedge website. Further supporting the theory, prices proceeded to bounce back within a few hours and, by the end of the day, were little changed.
“There was nothing of substance, probably some algo-related, machine-based happening amid an absence of bids in a holiday market,” said Hiroshi Yanagisawa, chief analyst at FX Prime by GMO Corp. in Tokyo.
The euro slid as low as $1.1558 on Monday before ending the day almost where it started at $1.1870. It was little changed in Asian trading Tuesday.
--With assistance from Liau Y-Sing
To contact the reporters on this story: Millie Munshi in Denver at mmunshi@bloomberg.net, Chikako Mogi in Tokyo at cmogi@bloomberg.net.
To contact the editors responsible for this story: Simon Casey at scasey4@bloomberg.net, Scott Schnipper, Kevin Miller
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