Currency Crash! Yen surges on flash crash!

Japan is in the middle of a 4-day bank holiday and liquidity was light after the close.  No specific catalyst can be attributed to the massive moves we are seeing in the yen and dollar.

Risk aversion was expected to follow the Apple news of cutting their guidance citing a steep drop in sales in China amid the trade war with the United States.  S&P 500 futures dropped 1.2% following the Apple news.  The moves seen in FX were extra-ordinary.  AUD/JPY fell over 7% at one point.

The Apple cut saw Q1 guidance decimated.  They cut Q1 revenue to ~$84 billion verse $91.3 billion eyed.

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Ed Moya

Ed Moya

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya