“There are rip-your-face-off rallies and then there are the rip-your-face-off retreats—the kind Wall Street experienced Thursday during a brief but vicious yen surge.
At one point, the U.S. dollar lost about 4 percent to the Japanese currency as the pair trade tumbled through its 50-day moving average.
The move sent the Dow industrials plunging 115 points after flirting with positive territory through most of the early session, and delivered a quick but palpable shock through all levels of financial markets.
“Right now this just looks like a bunch of nervous hands,” said Christopher Vecchio, currency analyst at DailyFX. “The dollar was a very extended trade. This is the unwinding of that very crowded trade.” …”
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