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Daily Archives: June 5th, 2015

Did a GBPUSD trade hoping to catch some action on the release of the UK retail sales.  UK and BOE looking at economy closely; housing prices, retail sales, and services PMI are data that will be volatile.

I decided to do a straddle: –

GBPUSD  –  Spot at 1.5600, Long Stop if Bid at 1.5625 and Short Stop if Offered at 1.5575.

The data came out in favour of the UK at 1.2% stronger than forecast of 0.4%.

However, the GBP didn’t really move that much, so I squared the position at 1.5660 for a trading profit of 35bps.

Given that the Federal Reserve is poised at raising interest rates this year as stated by Janet Yellen, clearly, all eyes are on employment data, GDP growth and consumption.

Today’s non farm payroll numbers is strong or weak will be a market mover.  Wednesday’s ADP was an indication though a marginal one.

I decided to place my bets on a strong non farm payroll number and did a stop if offered sell EURUSD and GBPUSD with the following at 8:20pm: –

EURUSD  –  Spot at 1.1222, Sell Stop if Offered at 1.1190

GBPUSD  –  Spot at 1.5329, Sell Stop if Offered at 1.5300

The non farm payroll number came out strong at 280K verusus expectations of 222K.

EUR and GBP crashed.

I squared my positions half an hour later at 1.1100 and 1.5238 for a trading profit of 90bps and 62bps respectively.

Not bad!