EURCHF Surges As Stops ‘Inadvertently’ Triggered In Tokyo Amid ‘Very Poor Liquidity’

And so, less than a day after EURCHF blew threw 1.12 for the first time since the SNB abandoned the floor…

EURCHF2

…the pair is the talk of the FX world again, as an early surge pushed the common currency to 1.13484 against the franc in Asian trading:

EURCHF

If you aren’t up to speed on this, you should really review the following posts, because this is undoubtedly notable:

The sharp move shown in the second chart above has raised some eyebrows and is being attributed to Japanese banks “inadvertently” triggering large stops.

“Very poor liquidity in the spot extended the move [as] EURCHF is taking a while to fill the gap due to an absence of natural sellers,” traders told Bloomberg, adding that “the move above overnight high was due to a combination of short covering and momentum buying and is being made more difficult as spreads blow out in both options and spot.”

So far, EURCHF is up some 2.8% on the week – that would be the biggest weekly gain since January 2015:

EURCHF3

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