GBPJPY fallen more than 1000 pips during the day. First fall to 137 was caused by GBPUSD fall, but second was caused by 400 pips USDJPY move.

S&P 500 was 10% lower.

Reuters says it was trading error:

Stocks plunged 9 percent in the last two hours of trading on Thursday before clawing back some of the losses as the escalating debt crisis in Europe stoked fears a new credit crunch was in the making.

The Dow suffered its biggest ever intraday point drop, which may have been caused by an erroneous trade entered by a person at a big Wall Street bank, multiple market sources said.

Indexes recovered some of their losses heading into the close but equities had erased much of their gains for the year to end down just over 3 percent, the biggest fall since April 2009.

“We did not know what a stock was worth today, and that is a serious problem,” said Joe Saluzzi of Themis Trading in New Jersey.

Traders around the world were shaken from their beds and told to start trading amid the plunge as investors sought to stem losses in the rapid market sell-off.

Declining stocks outnumbered advancers on the New York Stock Exchange by more than 17 to 1. Volume soared to it highest level this year by far.

Nasdaq said it was investigating potentially erroneous transactions involving multiple securities executed between 2:40 p.m. and 3 p.m.

stop moved at cost at 1.541

Both pairs opened with up-gap, but then fallen down. But the gap was not filled. So it does not point to the downside, nor to the upside. On the daily chart both pairs formed double bottom. But I’am expecting they will fall in the nearest future. So I will wait to form double top on hourly to short.

No matter what you call it – a buck, a single, a one-spot or a greenback – Wall Street stock traders are obsessing over the U.S. dollar.
Pick up any analyst report on stocks, and you will likely find the word “dollar” staring back at you.

Seeking an explanation as to why the price of stocks, oil, gold, copper or virtually any other financial asset is going up or down? Chances are the answer has something to do with whether the U.S. dollar is rising or falling in value vs. other currencies.

Even the recent chatter about another bubble forming seems to end up in a debate about the weak dollar – near a 15-month low – and interest rates near 0%. Bears say investors are using these cheap sources of cash to finance the purchase of riskier assets, such as stocks.

For now, as the dollar goes, so goes the stock market. Stocks rise when the dollar slumps and fall when it’s up. Why are stock investors acting as if they are currency traders?

•Dollar swings move big multinational stocks. A weak dollar is a godsend to big U.S. companies that sell the bulk of their goods abroad. Why? U.S. goods cost less for foreigners, which boosts sales; and sales made in pricier currencies, such as the euro, equal fatter profits for U.S. firms when translated back to dollars.

Companies in the Standard & Poor’s 500 index that garner more than half of their sales outside the U.S. have gained almost 50% this year, vs. a rise of 21% for stocks who companies generate all their sales at home, says Bespoke Investment Group.

And that trend should continue if the dollar remains weak or falls more, says Bespoke’s Paul Hickey.

•Dollar plays are bets on the pace of the recovery. “There are only two trades right now,” says Richard Bernstein, CEO of Richard Bernstein Capital Management. The first, and the trade that’s been working best, is a bet that global growth will improve. If you believe in that thesis, it makes sense to bet against the dollar and buy lower-quality assets with more risk but big potential gains, such as emerging-market stocks and bonds, gold, commodities and small stocks, says Bernstein.

The other trade is based on the belief that “global growth will deteriorate,” he says. In that scenario, betting on the dollar makes sense because it is still a haven in tough times. “The weak dollar is merely the symptom of investors’ willingness to bet on riskier investments rather than … the U.S. hegemony,” says Bernstein.

Some warn that too many investors are focused on currency moves, not fundamentals. Buying riskier assets financed with cheap dollars is “getting crowded,” says trader Michael Panzner: “A little uptick in the dollar could lead to a stampede out of a raft of speculative asset plays.”

(c) USA TODAY

GBP drops more than 100 pips against USD and JPY in less than 10 minutes after FITCH says UK it most at risk of losing SAYS UK IS MOST AT RISK OF “AAA” credit rating.
Risk appetite decreased a lot.

World stocks and high yielding growth-related currencies slid on Wednesday, boosting safe-haven government debt as investors fretted about the pace of economic recovery after disappointing U.S. consumer confidence data.

The yen and the U.S. dollar edged higher as traders trimmed positions and reduced risk exposure, while oil fell below $79 a barrel, giving up some of the previous day’s percent gains as equities extended losses.

European shares hit a three-week low, led by sharp falls in banking shares after Santander reported a 2.8 percent fall in net profit and on concerns about the rescue of “bad banks” in Ireland.

U.S. equity futures were down 0.6 percent, pointing to further losses on Wall Street with investors bracing for durable goods data and new home sales figures for further insights into the health of the world’s biggest economy.

The Conference Board’s weaker-than-expected U.S. consumer confidence index for October on Tuesday revived growth worries, cooling investor appetite for riskier assets like equities and higher yielding currencies.

stop hit. loss 60 pips