Market and media hype coming up to last night’s ECB rate decision and press conference was not strong. Market pretty much expected Draghi to keep things calm especially with the lack of growth and inflation in Euroland and more importantly, the big irritation of Greece still on the table.
At about 8:25pm, just before the press conference EURUSD spot was trading at about 1.0575, I placed a spread trade; Long, Stop if Bid at 1.06 and Short, Stop if Offered at 1.0550.
6 mins into the press conference, my 1.06 trade was triggered. Mkt went all the way up to 1.0673 on spike, however, we managed to take profit on half the trade at 1.0655 for a trading profit of 55bps.
I kept the balance half trade till today to see how Australia and Asia would react. Wow……….8am this morning during Aussie session, it bid the EURUSD all the way yup to 1.0733. I took profit on the remaining half of the trade at 1.0700 for a trading profit of 100bps.
On consolidated basis for this trade, the trading profit was 77.5bps…………not bad!
The Panthenon Investment Group 