Movement of madness at 14.00 CET at the failure of the transaction between Chinaclo and Rio.

[RTFX-Trading]

Movement of madness at 14.00 CET at the failure of the transaction between Chinaclo and Rio.

I wondered why, just before 14.00 CET today, the GBPUSD has dropped by 245 points or 1.50% from 1.6370 to 1.6125 and AUDUSD of 138 points or 1.72% from 0.8033 to 0.7895?

A friend working in a large international bank gives me the answer: a large U.S. bank sold a huge amount of Australian dollars and pound sterling in relation to an unwinding of hedges related to the failure of negotiations between Chinaclo and Rio. He informs me that the amount would have been nearly 5 billion purchase of U.S. dollars against a basket of currencies at London fixing.


Nicolas Longchamp
Head of trading desk.
RTFX Ltd
Head Office
Level 2, Suite 2, The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel:  +356 23 31 00 00
Fax: +356 21 41 24 58
Web: www.rtfx.com

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