The UK economy has been wavering back and forth with no strong solid trend. I felt that today’s UK Services PMI could be a telling sign as to where the economy will be heading and potentially a volatile data event.
So at about 4:25pm, I did a straddle trade with the following details: –
Stop if Bid: 1.5300
Spot: 1.5263
Stop if Offered: 1.5230
When the data came out at 4:30pm, it was weaker at 55.6 compared to expectations of 57.6, unfortunately, the the GBP didn’t really dip that much, it went to a low of 1.5238 and rebounded. It didn’t trigger my trade, so I decided to pull the trade out.
It’s now 9:20pm and the GBP is holding at 1.5264. So in hindsight it was prudent to pull out the trade, as nothing really happened going into early NY session.
I guess the world is more focused on tonight’s ECB and Mario Draghi!!!
The Panthenon Investment Group 