Euro Flash Crash - Market Correlation Lives On
Early on Wednesday, U.S. futures traded higher. The results of an Italian debt auction came in better than expected, and may have lifted the hopes of traders.
Then, right around 10am ET, the EUR/USD pair began to crash—significantly. The pair moved down roughly 0.60% in about 10 minutes, which is a huge move for a currency pair.
While the reason for this significant move was unknown—there were no obvious headlines—chatter circulated among traders that a downgrade of France was forthcoming.
That rumor had made its rounds for months, so whether or not it was truly propelling the action in the markets is somewhat in doubt.
Still, if Wednesday’s action demonstrated anything it was that the correlation between the U.S. dollar and other asset classes lives on.
When the EUR/USD broke below the psychological $1.30 level, a multitude of other assets followed suit.
NEW YORK () — US stocks were mostly higher Monday on a rise in personal income and more signs of life in corporate deal-making, while a downgrade of Amazon.com Inc. hit technology shares. “The economic reports are
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