I was watching the fx rates the 15 minutes prior to the 2am FOMC announcement, rates were holding steady in a very tight 5 bps range.
While it is near impossible to guesstimate what Bernanke is going to do, the general consensus in the marketplace is that he will make some ‘light’ tapering so as to follow through with what he has been saying the past two months.
I placed a total of 4 trades: –
AUDUSD – Buy Stop if Offered at 0.9388, spot was 0.9368
EURUSD – Buy Stop if Offered at 1.3395, spot was 1.3372
USDJPY – Sell Stop if Bid at 99.10, spot was 98.85
GBPUSD – Sell Stop if Bid at 1.5950, spot was 1.5971
Then at 2am, Bernanke shocked the financial markets with ZERO tapering! All the majors jumped against the USD, I was triggered on my AUDUSD and EURUSD.
I squared the AUDUSD at 0.9460 and the EURUSD at 1.3455 when I saw that the momentum was flattening out, then again, half an hour later, the majors resumed their torture on the USD. Trading profit on the AUD was 72bps and on the EUR it was 60bps.
Today, Asian afternoon and London morning, AUDUSD is at 0.9507 and EURUSD is at 1.3567. Oh well, one can’t capture the maximum move, I am happy with what I made in 15 minutes last night.
I was out playing golf this morning and got home early afternoon.
The Panthenon Investment Group 