Why??

[VingTsunKuen]

Could someone please explain why GBP/JPY tends to move like crazy elephant on speed?
You know what i mean..
For example E/U or G/U had a daily move of 250 pips and G/Y in the same day have a 500 pips move..
Few day ago we even had a daily high/low of 1156 pips on G/Y while G/U had daily high/low of "just" 645 pips..
So what are the reasons of such massive moves that we can see on G/J pair?
Thanx in advance!
Cheers,
VTK

 

[montmorencyt2w]

I'm curious as to why the Euro was on speed yesterday. Against the GBP, I could understand, but several other pairs were similar. Since I thought the fundamentals outlook for Euroland was not much better than in the UK, I could not really think of a good reason for this, not that one needs a reason. If it moves, I'll trade it, or will consider doing so, anyway.

 

[jeffsmith]

I'm curious as to why the Euro was on speed yesterday. Against the GBP, I could understand, but several other pairs were similar. Since I thought the fundamentals outlook for Euroland was not much better than in the UK, I could not really think of a good reason for this, not that one needs a reason. If it moves, I'll trade it, or will consider doing so, anyway.

That might be because In spite of the slight rebound the 15 countries that use the euro as currency have registered negative growth.Only France has managed to escape the clutches of a recession amid the growing financial crisis.

 

[montmorencyt2w]

That might be because In spite of the slight rebound the 15 countries that use the euro as currency have registered negative growth.Only France has managed to escape the clutches of a recession amid the growing financial crisis.

Holland too, I'm told. Er, but I think that is behind my question. With Europe in recession, why is the Euro so strong ? e.g. EUR/CAD has been going like a train in recent days (since beginning November, as far as I can see).

 

[Rhody Trader]

For example E/U or G/U had a daily move of 250 pips and G/Y in the same day have a 500 pips move..

You need to take into account the fact that GBP/JPY is at a much higher price point then EUR/USD or GBP/USD. That means on a similar % move it's going to move more. And don't forget you're comparing a JPY cross to a USD cross. Take a look at what's been happening in USD/JPY.

 

[VingTsunKuen]

You need to take into account the fact that GBP/JPY is at a much higher price point then EUR/USD or GBP/USD. That means on a similar % move it's going to move more. And don't forget you're comparing a JPY cross to a USD cross. Take a look at what's been happening in USD/JPY.

Could you please explain what do you mean by "much higher price point"?
If you could be so kind and elaborate little bit more on subject.
Thanx in advance Rhody!
Regaards,
VTK

 

[Rhody Trader]

Could you please explain what do you mean by "much higher price point"?

GBP/JPY is at 145 and was up over 200 not that long ago. A 1% move is nearly 150 pips. A 1% move in EUR/USD is a bit under 130 pips right now. That's what I mean by higher price point.

As I noted, though, look to JPY in this particular situation as the volatility driver.