Apple Woes Trigger FX ‘flash crash’, Growth Fears Weigh

The catalyst behind the market sell-off has been attributed to a failed algorithmic program, nobody should understate the stresses that we are at risk of seeing in financial markets this year
Lukman Otunuga

Open your FXTM account today

If market participants needed any further guidance that 2019 is shaping up to be the year where investors are preparing to sell everything, then all that is required is for traders to take a simple look at what transpired in the Asian trading session overnight. A “flash crash” hit the currency markets and while the most recent one of October 2016 was mostly limited to movements in the British Pound crosses, the one that transpired last night took a number of different currencies out of sync.

The USDJPY crashed by over 400 pips to touch levels not seen since November 2016, while the AUDUSD dropped beyond 500 pips to touch levels not seen since early 2009. The British Pound also fell to its lowest level against the Dollar since April 2017 with the USDTRY also jumping from 5.39 to 5.78.

The catalyst behind the market sell-off has been attributed to a failed algorithmic program, nobody should understate the stresses that we are at risk of seeing in financial markets this year. The uncertain political environment is a major reason behind the uncertainty throughout global financial markets, and we are now approaching the time where individual economies and corporations begin to publicly state the headwinds that they are facing from the prolonged trade tensions between the United States and China.

Interestingly enough, Apple were the latest company to issue such a narrative and have cut their revenue outlook for the first time in almost two decades overnight. Chief Executive Officer, Tim Cook even went as far as to indicate that mounting uncertainty in financial markets and that the trade tensions are contributing to the “shortfall” in company revenue.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.