From the FXWW Chatroom: Interbank volumes were over 10x averages between 10 and 10:30 GMT in GBPUSD – the absolute volume traded here was similar to the October 7 crash in fact. This is particularly interesting as GBPUSD price move was around 0.125% in magnitude on similar volume. This may suggest very imbalanced demand of buying vs selling (1% higher vs 8% lower), or may be reflective of very different liquidity conditions as the market was prepared and the event was during London core hours, or both.
Interbank liquidity density dropped to about 20% of usual during the UK court statement, which is many times better than what was seen on October 7, but still meant that liquidity was 5 times as expensive. See below charts on interbank volumes and liquidity density.
Biggest net flow of the session was to buy GBP where interest was expressed equally across EURGBP and GBPUSD. It may however be noted that on the day as a whole, GBP net flows were only slightly skewed to buying.
Outside of GBP, we saw interest to sell EUR, JPY, NZD and CAD but buy CHF.
In EM we saw a net buying bias, fading overnight moves.
Interbank liquidity density dropped to about 20% of usual during the UK court statement, which is many times better than what was seen on October 7, but still meant that liquidity was 5 times as expensive. See below charts on interbank volumes and liquidity density.
Biggest net flow of the session was to buy GBP where interest was expressed equally across EURGBP and GBPUSD. It may however be noted that on the day as a whole, GBP net flows were only slightly skewed to buying.
Outside of GBP, we saw interest to sell EUR, JPY, NZD and CAD but buy CHF.
In EM we saw a net buying bias, fading overnight moves.
Citi: we had seen leveraged buying in the move this morning, profit taking afterwards across the board, all client types involved
View the latest market information in the FXWW Chatroom with a free trial