• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

When Only The Machines Are Stirring - GBP Goes Bidless

Tyler Durden's picture


UPDATE: GBP -160pips now

It seems that while all the good boys and girls of the world are opening gifts and starting to drink heavily on this festive day, something is afoot in the GBPUSD FX pair. With not a creature stirring apart from a few algos, the transatlantic cross has gone steadily bidless - now down 90 pips in a well coordinated dribble-down algo battering.

Of course, it isn't like there are hundreds of billions in trade terms relying on an accurate, credible depiction of what this currency pair's true, algo-free value is, so don't expect anyone to actually lift a finger to explain what just happened.



Merry Cliffmas, signed Johhny 5

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Tue, 12/25/2012 - 10:31 | 3094526 JeremyWS
JeremyWS's picture

FYI a MUCH cleaner chart here - http://tinypic.com/r/vxkxs4/6


Also it just printed a new low under 1.6015 

Tue, 12/25/2012 - 11:03 | 3094586 JeremyWS
JeremyWS's picture

even better - http://tinypic.com/r/ylzll/6



Tue, 12/25/2012 - 11:22 | 3094610 JeremyWS
JeremyWS's picture

when will it end?? http://tinypic.com/r/34q94k0/6



Tue, 12/25/2012 - 12:36 | 3094711 Cookie
Cookie's picture

remember when it was par?

Tue, 12/25/2012 - 13:31 | 3094805 French Frog
French Frog's picture

We didn't even have to wait until tomorrow's re-opening...Cable already back above 1.61xx. Absolute non-event and it will have no effect whatsoever on 99.999...% of trading accounts

Tue, 12/25/2012 - 16:15 | 3095105 dracos_ghost
dracos_ghost's picture

These algos are supposed to be smart but they can't figure out if(Christmas()) { ShutDownAndRelaxYouStupidFuckingDegenerateWhores(); }

Tue, 12/25/2012 - 18:00 | 3095275 ball-and-chain
ball-and-chain's picture

Last night I called my mother.

I asked her if machines were taking over the world.

She said yes.

I asked if there was any hope.

She told me that we're all screwed.

That woman is a genius.


Tue, 12/25/2012 - 10:38 | 3094537 TraderTimm
TraderTimm's picture

There must be a point where anyone trying to warn someone who won't listen wishes - "Fine, let the whole thing collapse around you - and afterward, when you come to me bruised and bloody asking how it is possible, I'll just stare you deep in the eyes and slowly close my door."

Let it get pounded to dust, if it will make anyone pay attention.

Above link without the html trappings, just the image:


Tue, 12/25/2012 - 11:47 | 3094643 JeremyWS
JeremyWS's picture

cheers, I'm pretty shit at linking images. I would have thought there was a deidicated image upload bit for comments.

Tue, 12/25/2012 - 12:25 | 3094696 JeremyWS
Tue, 12/25/2012 - 13:00 | 3094746 TraderTimm
TraderTimm's picture

No problem mate, just wanted to get to the guts of the chart itself - thanks for posting them.

Tue, 12/25/2012 - 10:37 | 3094539 judejin
judejin's picture

shanghai silver T+D crashed 12% and now retraced entirely.  small investors got ripped clean again!

looks like blithe masters has students in china.

Tue, 12/25/2012 - 11:39 | 3094631 fonzannoon
fonzannoon's picture

Why would Shanghai want to crash silver? I thought they were actually warning their citizens to own precious metals.

Tue, 12/25/2012 - 12:30 | 3094702 judejin
judejin's picture

big sharks(commercials) fleecing small investors(weak hands) while the regulars look the other way.

it happened many times in night sessions.

Tue, 12/25/2012 - 13:31 | 3094801 Salon
Salon's picture

Eventually everyone figures out that it is a paper version of the game musicals chairs.

Then a new equilibrium occurs

Tue, 12/25/2012 - 13:20 | 3094779 Nage42
Nage42's picture

Some details....

The Chinese government urged their citezenry to attach some of their savings to tangible assets and not overly commit to speculative paper (read: any equity market, irrespective of venue).

The Shanghai metals exchange was setup by the same group of upstanding gentlemen that setup the CME/LME, and one can expect the same level of fairness there as you can experience in their parent markets (do I really need to use the </sarc> tag?!?


Any futures market that does not have atomic-transact, real-time commit of _physical_ third-party-audited commodity with recourse via tort/property law is "YOU ARE 'DA LOSE, SUCKA~!"


Exchange in China operating under international established financial rule-set (excuse me while I go wash my hands after typing that...) does NOT equal to state sponsored and guarenteed-fairness system.


Queue Loony-toons voice with emphatic spitting duck:   "Pllllllllllllleeeeeeeeeeeeeeeeeease"




Tue, 12/25/2012 - 17:57 | 3095272 onebir
onebir's picture

According to Andrew MacGuire silver (spot?) has been trading at a premium of up to $1.79/oz relative to LBMA recently. Maybe someone was buying LBMA silver to sell in Shanghai, and the resulting drop developed some momentum of its own?

Tue, 12/25/2012 - 11:00 | 3094575 Water Is Wet
Water Is Wet's picture

"this currency pair's true, algo-free value"

LOL, the battle of the fiat backed by 1000% debt to GDP versus the fiat backed by $16.X trillion.  WTF are you talking about "value"?  You'd need something of value to compare against!  Looks like Tyler is on the holiday wake-n-bake schedule.

Tue, 12/25/2012 - 11:24 | 3094616 Water Is Wet
Water Is Wet's picture

Also, can someone remind me if this is a "deflation will crush stocks and my gold will soar" day on Zerohedge, or if this is a "hyperinflation will crush stocks and my gold will soar" day on Zerohedge.  I left my schedule at my beach house.

Tue, 12/25/2012 - 11:51 | 3094650 fonzannoon
fonzannoon's picture

Gold does not soar. Dollars turn to shit.

Tue, 12/25/2012 - 12:03 | 3094660 Water Is Wet
Water Is Wet's picture

You say potato, I say tomato, nancy-boy.

Tue, 12/25/2012 - 12:30 | 3094703 fonzannoon
fonzannoon's picture

Nancy boy? Merry Christmas. make yourself a mai tai and go back down to your beach house setup in your parents basement with your pink flamingo ornament and 30yr old rusted lounge chair. Sorry to interrupt your day. no need to get your speedo in a bunch.

Tue, 12/25/2012 - 13:22 | 3094785 Yen Cross
Yen Cross's picture

lulz :)  Merry Christmas fonz.

Tue, 12/25/2012 - 13:55 | 3094855 fonzannoon
fonzannoon's picture

You too Yen and everyone else. have a great day.

Tue, 12/25/2012 - 11:02 | 3094582 Bubble
Bubble's picture

The Piers Morgan petition. There are no co-incidences.

Tue, 12/25/2012 - 11:24 | 3094613 Yen Cross
Yen Cross's picture

 Here is a currency rate link, if you don't have an offshore platform/   http://www.fxstreet.com/rates-charts/currency-rates/

  It's real time and working ;-)  Time to take Carney off the bench.

Tue, 12/25/2012 - 11:56 | 3094655 French Frog
French Frog's picture

Look at other Gbp pairs and there is no movement at all apart from Gbp/Jpy: for example Gbp/Aud and Aud/Usd have not moved at all so there is an arbitrage play available here IF (big IF) your platform is open but 99.999...% of retail platforms are closed today so no play and by the time we re-open tomorrow Gbp/Usd will be back up above 1.61xx (and NO stop-losses will have been hit for retail guys & girls).



Tue, 12/25/2012 - 12:20 | 3094688 Yen Cross
Yen Cross's picture

 Thanks for the update F/F...

Tue, 12/25/2012 - 13:38 | 3094799 French Frog
French Frog's picture

Cable already back above 1.61xx

Tue, 12/25/2012 - 14:35 | 3094825 Yen Cross
Yen Cross's picture

Yea, I caught that. Cable is a pisser to trade. I've been taken to the woodshed a few times trading that pair. Back in September when Draghi dropped his tape bomb in the middle of the night U.S. time, I was short cable and got ass raped. Haven't traded it since. I like GBP/AUD though. That pair trends nicely if you catch it in the right direction.

Tue, 12/25/2012 - 23:44 | 3095649 Zero Bid
Zero Bid's picture

Mssrs. Rolls and Royce for starters

Tue, 12/25/2012 - 23:56 | 3095661 SnobGobbler
SnobGobbler's picture

no shit, AUD trading is for pussies; they act like they're in the club; suckers. /sarc

Tue, 12/25/2012 - 11:36 | 3094630 PUD
PUD's picture

Get to work mr BOE man....do your job. Is this some impending retaliation strike against the BOJ? Open war now?

Tue, 12/25/2012 - 11:45 | 3094639 orangegeek
orangegeek's picture

tea and crumpets anyone?

Tue, 12/25/2012 - 11:50 | 3094648 virgilcaine
virgilcaine's picture

Deflationary.. the worst possible outcome for the Year, a rising USD.

Tue, 12/25/2012 - 11:56 | 3094654 fonzannoon
fonzannoon's picture

worst outcome for whom? The banks?

Tue, 12/25/2012 - 17:44 | 3095251 Yen Cross
Yen Cross's picture

Good job fonz.

Tue, 12/25/2012 - 12:53 | 3094741 blunderdog
blunderdog's picture

Maybe the UK central banksters finally decided to get serious about "growing exports"?

Tue, 12/25/2012 - 13:25 | 3094770 Salon
Salon's picture

Signs are everywhere.

Liquidity ( value easily exchangeable) dries up, unevenly, sporadically, in stages, but is trending lower no matter how hard the Central Banks try to hide it.

No amount of paper promises from the world's central banks can stop the future. Mathematics cannot be changed by wishful thinking.

Paper promises (PP) > underlying economy can support (UECS)

The best result is this below, but how we get there is unknown.


But we will likely overshoot


Nobody is gonna ring a bell for you.

Crack up boom?
Deflationary collapse?

Or long, slow, painful decline? Uhhh.....I mean rebalancing and rightsizing with shiny happy people holding hands through it all

Tue, 12/25/2012 - 22:51 | 3095592 Water Is Wet
Water Is Wet's picture

I LOL at the "Mathematics cannot be changed" people.  This is mob rule.  The guys with the biggest guns rule the mob.  If they run out of "money," they will take yours and they will find some way to make it legal.

Tue, 12/25/2012 - 19:24 | 3095364 FiatFapper
FiatFapper's picture

GBPUSD year open @ 1.55438

I suspect the junior traders in bed with their algo toys have been given a remit to sniff orders south, ready for the new BoE goldmanite  next year.

Tue, 12/25/2012 - 20:29 | 3095437 bentaxle
bentaxle's picture

Well, think The Queen maybe front-running it too, now she knows none of that gold she saw was hers!

Tue, 12/25/2012 - 21:03 | 3095474 Element
Element's picture



"Markets! ... get you're free-markets ... going real cheap! ... you Sir, ... yes, would you like a free-market Sir? ... this one's barely being used! ... no? ... ... Markets! ... two for one deals, no problemo! ... get your free-markets! ..."

Good gawd this 'investment' system is bankrupt, on the ropes, and running on empty.  Entire thing is a facade, a mere simulation of a market, not an actual market.

Wed, 12/26/2012 - 03:43 | 3095774 Blue Horshoe Lo...
Blue Horshoe Loves Annacott Steel's picture

Someone tripped over the power cord that connects the high frequency trading computer to the wall.

Wed, 12/26/2012 - 06:29 | 3095845 80miltrustfundkid
80miltrustfundkid's picture

 The boys & girls in the computer lab are calling BGOBP hyper algos 

Do NOT follow this link or you will be banned from the site!