Flash Crash: Should Pound Traders Remain Cautious?
The pound plunged to a fresh 31-year low against the dollar in two minutes of chaotic trading in Asia, with traders saying the slump was exacerbated by computer-initiated sell orders. The 6.1 percent slide, the biggest decline since the U.K.’s Brexit referendum result was announced, drove sterling as low as $1.1841, according to composite prices compiled by Bloomberg using contributions from a range of dealers. That’s the weakest level since March 1985. At least one electronic trading platform recorded a transaction as low as $1.1378, said traders familiar with the transactions, who asked not to be identified because they aren’t authorized to speak publicly. UBS Head of U.K. Investment Office Geoffrey Yu discusses with Bloomberg's Anna Edwards and Manus Cranny on "Countdown."