"What The F**k Was That?" Currency Traders Reeling Amid Sterling, Yen, Gold Chaos

Tyler Durden's picture

Shortly after 0826ET, with Cable trading at 1.2400, 'someone' decided to back up the truck and buy Sterling with bond hands and feet, spiking the pair to 1.2499 (to the tick) in spot (and over 1.25 in futures). Given the total lack of catalyst for the move, one veteran FX trader exclaimed "what the fuck was that" though noted his lack of surprise at the move in the current chaotic environment. Notably, yen and gold moved at the same time suggesting a much bigger footprint.

As Bloomberg reports, heavy barrier option presence at 1.2500 remain untriggered...


Chatter that GBPJPY was the driver of the move...


Futures show the sudden heavy volume...


Some context for the volume surge...


Though some traders are talking of action in Gold driving the move


Especially notable in GBPJPY...

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Looney's picture


It was Kevin Henry’s head hitting the keyboard!   ;-)


Haus-Targaryen's picture

I've been waiting for this pig to implode since 2011.  Every week I wake up and think "maybe its this week" and alas every week passes and this system keeps going.  

I understand I am holding my breath for a "once-in-a-lifetime" financial event.  I just figured it would have ended by now and we'd be in the process of rebuilding.  

back to basics's picture

You are not alone. As I posted several times before, the madness seems to have taken a life of its own. Unless someone however has discovered a way to defy gravity on earth and I haven't got the memo, this will end in tears like every madness before it. Only this time there may not be life after the tears end.

SomethingSomethingDarkSide's picture

BoJ has begun the 2017 Death Spiral:

1) Perception of Higher Rates post election -> Rates Rise.

2) Rates Rise, Bank of Japan begins unlimited purchases to counter Lower Japanese Rates.

3) Traders take advantage of Yen Carry Trade and Unlimited Purchasing, purchase US Stocks as they are the only resilient option globally as bonds and gold get whacked.

4) Weak Yen makes for a Strong Dollar, Rates Rise Further.

5) Rinse and Repeat until the Forex Tsunami creates the next Lehman.


SOMEONE has to be short/long a major currency and is getting railed... but who?

HowdyDoody's picture

<-- everything is reeling except the USD which is a totally reliable world benchmark currency.

<-- everything is stable except for the USD which is a totally unreliable world benchmark currency as it is being printed like there is no tomorrow.


Squid-puppets a-go-go's picture

Goldman. Theyz been making sme WTF type calls that tell me they're in ru and want to bluff the market into another direction

LawsofPhysics's picture

Until there is a universal rejection of fiat, things will simply continue to decline.  Real change requires real work.

Soon enough the laws of physics and Nature will re-assert themselves and life will be "simple" again. Specifically, if you don't work, then you don't eat.

firstdivision's picture

The only way it'll implode is when it is no longer their game.  For now, its their game by their rules. 

BandGap's picture

Changes first require an energy for breakthrough and then (re)arrangement. It is how the universe works, except of course the spontaneous appearance of what we view as reality billions of years ago. But that is for debate, as well. It is a certainty we are into the process of change.

My wife and I were just discussing if we are "ready" enough. This would require at least a partial understanding of what we should be ready for. In the chaos we make educated guesses. Back up manual pump for the well, two cords of firewood for the stove and fireplace. Plenty of canned and dried goods for at least a month. After that I think it best to be able to react before committing resources.

The whole family will be together in two days. Take time to tell those that matter you love them, enjoy the experinces God has granted us. And give the kids some extra ammo after you practice out on the acreage.  

Azannoth's picture

A man fell out of a window on the 100th floor, every floor he passed he thought to him self "so far so good" - the next crash will be for another 1000 years to remember

thesonandheir's picture

Dump those risky gold bars and run to the safety of the Great British Peso!

Kagemusho's picture

Glad I wasn't drinking anything when I read that. LOL! Good one!

Seriously, though, the claw of that currency vulture Soros is probably involved in this like it was back in 1990's.

abyssinian's picture

dump all those useless dollars and US stocks now.... 

ANestIOS's picture

warning - too many cable shorts

Infield_Fly's picture
Infield_Fly (not verified) Nov 21, 2016 9:03 AM

yellen/CBs doing all they can to keep the USD down


CBs can pin the SPX, but bonds and currencies they are not - too large a market.


5T in USD transact through NY each day - have fun with that yellen.


As USD moves higher - SPX and commodities (incl oil) get downward pressure - or are pinned until they plunge sharply

SomethingSomethingDarkSide's picture

Fuck this shit, continue buying all the miner shares not nailed to the floor.

Azannoth's picture

You can gladly have mine but I will have to ask x10 of the current price to break even

Cluster_Frak's picture

Brits said they will lower corporate taxes. Trump is not President yet and he is already spreading panic among socialists, who now must lower taxes to compete with the USA. Marxists must be pissed.

sudzee's picture

Did London just refuse to give back European  gold if forced into hard brexit? 

SomethingSomethingDarkSide's picture

DOPE SLAP!  From The Queen, no less.

CuttingEdge's picture

What fucking gold?

That cunt Brown sold it all on the cheap.

Food Loaf Junkie's picture

Brown sold all the British gold, they still hold other peoples gold and as is stated here numerous times, if you don't hold it, you don't OWN it.

Grandad Grumps's picture

In the very big scheme of things this means absolutely NOTHING. It is possible because the banks control price absolutely. Sometime later they will come out with an excuse for what they did.

Doesn't it seem odd how controlled an contrived everything is. It is clumsy. The world was designed to work on a molecular (or smaller) level, with seemless interactions that compensate and balance for each other. When abnormal things happen on a gross level then one knows that human intervention and a plan (most likely flawed, because we are imperfect beings) is involved.

sudzee's picture

Could also be 40 trillion rupee looking for safe haven. British pound looks prefferable since the Brits treated Indians much better than the current administration.

. . . _ _ _ . . .'s picture

Might be something to that theory...

"Is There An 'Undeclared Emergency' Today?"

from, the Citizen - India

NobodyNowhere's picture

Some big fish started selling gold and silver in GBP and when the big dealers sensed the move they rushed into GBP at 8:26 - that would explain it

canisdirus's picture

India, or prepping to sell to India as PMs go higher.

NobodyNowhere's picture

Such action is reinforcing the emerging bearish PM trend

canisdirus's picture

Isn't some of this noise from the India situation?

Bryan's picture

There is a LOT of fiat out there looking for a Safe Space(tm).  Perhaps it's finding that in GBP or Gold?

Orly's picture

Our old friend Tony Blair must have made some headway in convincing Teresa May to drop the appeal to the Supreme Court.

That would explain it, too.  It is also quite temporary.  Even if May holds on to her last appeal, Brexit will find its way through Parliament.

Tony, go home.


GreatUncle's picture

Criminals should go to jail.

NugginFuts's picture

How much you wanna bet this peters out by mid-morning, followed by another rise in bank stocks? Viva la GS!

Orly's picture

And, right on cue, the London fix has the whole thing reversing.

Amazing, innit?

NugginFuts's picture

Sadly predictable, really... 

medium giraffe's picture

Ahhh... so Mr Carney has recieved that tainted Clamato I sent him.  Muah ha ha ha ha...

GreatUncle's picture

If you think of a stagnant economic system, little to no growth, cannot be allowed to fall the volatility is created by those with clout in the market so now watch for the reverse.

They create the volatility, they need to earn in a Keynesian world otherwise in effect they financially lose.

Look at the size, if you are in a low growth world of 1%, you have to make the other 1% assuming Keynes at 2% to stand still those poor elites.


Raul44's picture

What the hell you guys expected to happen after such a huge brexit drop??! 

Orly's picture

That was like eight years ago, dude...in 4X time.

Lord Peter Pipsqueak's picture

This is possibly the reason,Theresa May selling the country out as widely expected,BREXIT will be negotiated away over the years to the point where the UK will have "left",but with virtually all the reasons the majority wanted to leave for intact, ie free movement of people(free access to the UK for asian and north African economic migrants),European Court of mudslime rapists rights still having seniority over UK courts,EU parliament having control over UK parliament and its laws,Uk still having to pay for the privilege of the above and for other indebted nations debts and welfare.


Ain't democracy great?

just the tip's picture


"What The F**k Was That?" - mayor of Hiroshima, August 6, 1945.
Darktarra's picture

There are so many games in today's markets.  The days of earn a dollar, save a dollar are LOOOOOOONG gone! 

Ammunition, fresh water, medicine and seeds are the only thing I believe in today! 

83_vf_1100_c's picture

  BitCoin is looking less attractive and those who thought they were safe may get some nasty letters from the IRS. http://www.pcworld.com/article/3143207/legal/the-irs-wants-to-id-every-u...

Maestro Maestro's picture

Whatever you do, just don't buy gold.

Not only can you not eat it, it's not even made of paper or plastic. Worse still, gold is not illegal like American dollars which are against the law according to the Constitution of these United States of America (Article 1, Section 10).

You Russians, Europeans, Arabs, Chinese, Indians, you are all so stupid. At least the Chosen People and their currently chosen host nation of the Americans are getting something (your real and valuable oil, other natural resources and assorted goods and services) for (less than) nothing (US Dollars -- they're not even DEFINED as to exactly what they are or represent, you morons).

What are YOU getting out of it and what does this make of you? 7 billion whores who are giving the oldest known profession a bad name by collectively taking it up the ass FOR FREE?

Flying Wombat's picture

"Notably, yen and gold moved at the same time suggesting a much bigger footprint." - yeah, the big-ass feet of central bankers and policy makers.  Lol...