I had to leave my trading desk this evening, but felt that the EURUSD was going to move up somewhat, based on my technical analysis; Ichimoku and possible better ZEW Economic Sentiment at 6pm (Singapore time).
So at about 5pm, I bought a small position, one day call option on the EURUSD expiring November 20th; Spot: 1.3515, Premium: 28bps and Breakeven: 1.3543.
Unfortunately, the ZEW Economic Sentiment came out lower than forecast at 60.2 versus 63.1, more importantly, is that the German ZEW Economic Sentiment came out flat at forecast of 54.6, so still staying above the 50 threshold level. What is more important is the counterbalancing stronger Germany versus the rest of the weaker Euroland.
EURUSD has stayed in a narrow range since issuance of data between 1.3491 and 1.3519. Let’s see if my trade fairs better tomorrow, we still have time till NY 10am.
The Panthenon Investment Group 