Euro Jumps 1.6 Percent in Minutes as Algo Orders Surprise Market
- Liquidity evaporated as euro buy orders surged above $1.05
- Europe’s shared currency has since pared its advance
Euro Surges 1.6% in Rush of Algo Orders
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The euro surged as much as 1.6 percent against the dollar in the Asian morning Friday as a rush of computer-generated orders caught traders off guard.
The sudden move started under $1.05 and algorithmic orders snowballed above that level, causing what little liquidity there was on the year’s last trading day to vanish, according to foreign-exchange traders. In minutes, Europe’s single currency jumped to a high of $1.0653, forcing some dealers to take losses to cover positions.