Community Forex Questions
What are some examples of famous spikes in forex?
Here are some examples of famous spikes in forex:
Swiss franc peg to the euro: On January 15, 2015, the Swiss National Bank (SNB) unexpectedly abandoned its peg between the Swiss franc and the euro. The franc surged against the euro by over 40% in a matter of minutes, causing chaos in forex markets. The SNB's decision was triggered by concerns about the growing strength of the franc, which was making Swiss exports less competitive.
British pound post-Brexit referendum: On June 24, 2016, the British pound plunged against other major currencies after the UK voted to leave the European Union. The pound fell by over 10% against the US dollar in the immediate aftermath of the referendum, and it continued to weaken in the months that followed. The pound's decline was due to a number of factors, including uncertainty about the UK's future economic relationship with the EU and concerns about the country's political stability.
Japanese yen flash crash: On October 7, 2018, the Japanese yen surged against other major currencies in a matter of minutes. The yen rose by over 7% against the US dollar in less than an hour, before falling back down to its previous levels. The flash crash was caused by a combination of factors, including algorithmic trading and a lack of liquidity in the market.
New Zealand dollar post-Kaikōura earthquake: On November 14, 2016, a 7.8 magnitude earthquake struck New Zealand, causing widespread damage. The New Zealand dollar plunged against other major currencies in the aftermath of the earthquake, as investors feared that the disaster would damage the country's economy. The dollar fell by over 3% against the US dollar in the immediate aftermath of the earthquake, and it continued to weaken in the weeks that followed. The dollar's decline was due to a number of factors, including concerns about the cost of rebuilding the country's infrastructure and the impact of the earthquake on tourism.
These are just a few examples of famous spikes in forex. Spikes can occur for a variety of reasons, including unexpected economic data releases, political events, and natural disasters. It is important for forex traders to be aware of the potential for spikes and to have a risk management plan in place to protect their capital.
Swiss franc peg to the euro: On January 15, 2015, the Swiss National Bank (SNB) unexpectedly abandoned its peg between the Swiss franc and the euro. The franc surged against the euro by over 40% in a matter of minutes, causing chaos in forex markets. The SNB's decision was triggered by concerns about the growing strength of the franc, which was making Swiss exports less competitive.
British pound post-Brexit referendum: On June 24, 2016, the British pound plunged against other major currencies after the UK voted to leave the European Union. The pound fell by over 10% against the US dollar in the immediate aftermath of the referendum, and it continued to weaken in the months that followed. The pound's decline was due to a number of factors, including uncertainty about the UK's future economic relationship with the EU and concerns about the country's political stability.
Japanese yen flash crash: On October 7, 2018, the Japanese yen surged against other major currencies in a matter of minutes. The yen rose by over 7% against the US dollar in less than an hour, before falling back down to its previous levels. The flash crash was caused by a combination of factors, including algorithmic trading and a lack of liquidity in the market.
New Zealand dollar post-Kaikōura earthquake: On November 14, 2016, a 7.8 magnitude earthquake struck New Zealand, causing widespread damage. The New Zealand dollar plunged against other major currencies in the aftermath of the earthquake, as investors feared that the disaster would damage the country's economy. The dollar fell by over 3% against the US dollar in the immediate aftermath of the earthquake, and it continued to weaken in the weeks that followed. The dollar's decline was due to a number of factors, including concerns about the cost of rebuilding the country's infrastructure and the impact of the earthquake on tourism.
These are just a few examples of famous spikes in forex. Spikes can occur for a variety of reasons, including unexpected economic data releases, political events, and natural disasters. It is important for forex traders to be aware of the potential for spikes and to have a risk management plan in place to protect their capital.
Oct 05, 2023 11:31