Friday, December 2, 2011

Did LME 'Flash Crash' Forewarn NFP Debacle

Long before the magnificent NFP headline data mesmerized USD buyers and flushed commodities down the pan, Copper at the LME saw a 'Flash Crash' and was forced to cancel all trades for the 646amET timestamp. Considering the post-'flash' action, it seems yet again a flash crash gives us a glimpse of reality.

The orange oval shows the flash crash event and then shortly afterwards the red oval shows the market's reaction to the NFP print.
Chart: Bloomberg

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