How fast can a given Forex currency exchange rate move?
On August 4, 2006, at 5:29 am the EUR/USD rate was 1.2799. At 5:31 am the rate had reached 1.2877. A single lot buy would have made 78 pips in two minutes or $780.00 on a single lot trade. In the volatile GBP/USD (British Pound/US Dollar) market on the same day during the same time period the rate moved from 1.8925 to 1.9052; a 127 pip move, translating to a $1270.00 single lot move in the space of just a couple of minutes.
