The much waited UK inflation report to confirm whether or not BOE will or will not cut rates of hold rates of increase rates.
I really didn’t know whether the market was going to go because the last clue from the BOE was that they will stay put for a while and maybe even consider cutting rates. However, the media had a different view. All the media spots were gunning that the BOE would be more hawkish.
Since, this data has been put on the pedestal, I thought I might as well try to see whether I can squeeze a trade out of it or not.
Since, I had no inclination one way or another, I decided to put a straddle spot out of the money trade.
At about 6:20pm, I placed a stop if bid at 1.5250 and stop if offered at 1.5185 when spot was trading at 1.5220.
When the data came out the GBP shot up to 1.5320 within 15 minutes. My stop if bid order was triggered at 1.5250, I decided to wait till about 9:30pm and squared the position at 1.5353 for a trading profit of 103bps.
Thank you BOE!
The Panthenon Investment Group 