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Spike like news?

  • #1
  • First Post: Sep 20, 2007 9:12pm Sep 20, 2007 9:12pm
Can somebody explain to me what made USD/CAD go down almost 60pipps in 10 minutes. The downfall started at 7:00EST, 20th September. Was it a reaction based on a news release? If yes what kind of news? I did not notice anything happening at 7:00 on ff calender.
  • #2
  • Sep 23, 2007 12:41pm Sep 23, 2007 12:41pm
I noticed the same action on Friday 21th of September. Check the USDCAD chart around 12:18EST, it "spiked" down for almost 50pips. What caused this action?
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  • #3
  • Sep 23, 2007 1:03pm Sep 23, 2007 1:03pm
Quoting damien17
I noticed the same action on Friday 21th of September. Check the USDCAD chart around 12:18EST, it "spiked" down for almost 50pips. What caused this action?
dont just look at the price action ... look at the price itself... whilst $cad hasnt been at parity for 30 years ... the big 1 level will surley have been a place where many stops and option strike prices will have been
  • #4
  • Sep 24, 2007 12:15am Sep 24, 2007 12:15am
sccz97 it makes perfect sense but I have one more example, take a look at the attachment. What happened in that case?
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  • #5
  • Sep 24, 2007 3:41am Sep 24, 2007 3:41am
Quoting damien17
sccz97 it makes perfect sense but I have one more example, take a look at the attachment. What happened in that case?

watch this pari more often you'll see that it's more susceptible to sudden moves like this. Whether it's from stops going off or ppl spoofing the mkt it doesnt matter.... that's just the way this pair behaves
  • #6
  • Sep 24, 2007 8:58am Sep 24, 2007 8:58am
Still don't get it. How can somebody spoof the market?
  • #7
  • Sep 24, 2007 9:07am Sep 24, 2007 9:07am
Quoting damien17
Still don't get it. How can somebody spoof the market?
This pair is thinly traded compared to Eur/usd, Usd/Jpy, and GBP/USD, so in off-hours relatively small amounts of money can be risked trying to run SL's or push option triggers, that sort of thing.
  • #8
  • Sep 24, 2007 9:13am Sep 24, 2007 9:13am
Quoting HalifaxCB
This pair is thinly traded compared to Eur/usd, Usd/Jpy, and GBP/USD, so in off-hours relatively small amounts of money can be risked trying to run SL's or push option triggers, that sort of thing.

that and also there used to be a trader who'd place out of court bids and offers on reuters and since a lot of market makers use reuters prices as a reference they'd automatically update their bids/offers on the ecns they're quoting on. The main point here is that his out of court bids would be tiny but the changes in quotes on hte ecns woudl be in size ... the rest you can figure out
  • #9
  • Last Post: Sep 25, 2007 7:16am Sep 25, 2007 7:16am
Quoting sccz97
that and also there used to be a trader who'd place out of court bids and offers on reuters and since a lot of market makers use reuters prices as a reference they'd automatically update their bids/offers on the ecns they're quoting on. The main point here is that his out of court bids would be tiny but the changes in quotes on hte ecns woudl be in size ... the rest you can figure out
Lol, I hadn't heard that one, but it sounds rather clever...

BTW - for the OP (damien17) USD/CAD hs generally been seen as a ccy that moves pretty much in tune with fib relationships, and has generally hit the 1.618 extension after a pullback followed to a return to a base level. There were two in play that day - one based on the pullback starting late July and peaking in mid Aug, the other - a very minor one, starting on the 19th - both of which had targets just over parity. Breaking the baseline of the second one was pretty much like "big news" for tech traders, a bit like opening the starting gate at a horse race....You may see something similar (but not as big) today if the US news at 1400GMT is bad, basing off the 0.9935 low and the recent 1.0055 high, putting the target at around 0.9865.
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