Sterling crash was the result of a 'Fat Finger' move which coincided with FT story citing French President Hollande demanding 'Hard Brexit' so that precedent is set and other nations are not motivated to leave EU.
However, Reuters suggests it was fat finger. We agree and also feel that Hollande is being unnecessarily blamed.
This is because; talk of 'Hard Brexit' is in place for quite some time. Hence, Hollande's comments are not surprising and cannot or should not result in a kind of sell-off which we saw in Asia.
Moreover, the fat finger sell-off is being retraced. The spot has recovered to 1.2465 levels from the low of 1.1491 (Reuters low). Better-than-expected UK manufacturing production number could help the bird extend the recovery ahead of US non-farm payrolls release.
On the higher side, 1.2590-1.2630 is key resistance levels to watch out for, while on the downside round figures could offer support. On the hourly chart, 1.2423 and 1.2388 could act as a support as well.
However, Reuters suggests it was fat finger. We agree and also feel that Hollande is being unnecessarily blamed.
This is because; talk of 'Hard Brexit' is in place for quite some time. Hence, Hollande's comments are not surprising and cannot or should not result in a kind of sell-off which we saw in Asia.
Moreover, the fat finger sell-off is being retraced. The spot has recovered to 1.2465 levels from the low of 1.1491 (Reuters low). Better-than-expected UK manufacturing production number could help the bird extend the recovery ahead of US non-farm payrolls release.
On the higher side, 1.2590-1.2630 is key resistance levels to watch out for, while on the downside round figures could offer support. On the hourly chart, 1.2423 and 1.2388 could act as a support as well.
