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Daily Archives: May 21st, 2013

Update on 2 month EURUSD call option strike 1.2990, BE 1.3175 expiring 21 June 2013

Time for me to do an update on the 2 month EURUSD call option that I  did back on 24 April 2013.  My cost was 185bps and the breakeven was  1.3175, the current spot of 1.2895, appears to be still very far from my  levels.

There is a real possibility that I  may have made a wrong call on this one and then again, I  may not, it’s really hard to say right now.

The tide which was very bullish USD may be turning this week and we might see the return of the bulls for EUR, GBP and AUD.

Mid week is going to be critical, Wednesday is the release of the BOE’s policy minutes, and also Bernanke speak on that day.

Thursday is crucial as fresh numbers on the flash PMIs will be out.

Friday is when Draghi speaks.

My hunch tells me that we will see alot of action and volatility in the latter part of the week, favoring a weaking dollar.

Trade: Thank you AUD; Long AUDUSD at 0.9765 and squared at 0.9810

Good morning to all, just when I was lamenting about a lost opportunity in the AUD yesterday, I also knew that in the forex markets, another opportunity would present itself.

It did.

This morning.

I Long the AUDUSD at 0.9765 during Asian time after the release of the RBA minutes to ensure no curve balls.  In fact, when the RBA minutes came out AUD tanked to 0.9750, but I waited till the rebound happened and some stability was seen in the charts.  Then, I Long the AUDUSD at 0.8765 at about 9.35am and just squared the position at 0.9810 at 11:30am.

I made a trading profit of 45bps or 0.45%.

Thank you AUD!

CPI data for the GBP this afternoon at 4:30pm, I believe it will be a market mover………….let’s see.

Have a nice lunch you all.