USDCHF Flash Crash Monday 11th Feb 2019

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200 pips crash USD/CHF Asian Session Begins

 

Monday trading was shocked by the flash crash which involve Swiss franc safe-haven currency.

Looking at the price movement on USD/CHF pair as soon the Asian session starts early in the morning, prices continue to surge around 100 pips almost reaching the 1.0100 price level before plummeting more than 100 pips further downgrade making more than 200 pips volatile price movements in just an hour. Volatile movement also occurs in all currencies matched with the CHF currency.

What has causes this situation to happen?

First of all, it should be noted that Asian session trading has very low liquidity at the very beginning of trading on Monday.

Last week, Chinese worldwide are celebrating the new year and market movement in China are moving slow because of the full week holiday. China economy is the world’s second largest after the US and had a huge impact on global financial markets.

The start of the new week, investor from China begins to be active in the market and this has impacted the liquidity of the market on Swiss market while they are still on holiday. This flash crash phenomenon will usually involve safe-haven trading and can be affected by the supply and demand activity in the market.

If you’re a “morning person” you might have gain this on USD/CHF trading position earlier in the morning!