Was there at the market to potentially capture this opportunity if the data came out much different from forecast.
Place a OTM stop if bid trade with the following details: –
GBPUSD – 1.5056 – 1.5075 with spot at 1.5056 and SL at 1.5065
Data came out as per expectations at 0.5%.
I withdrew the trade……………….so so boring!
Unemployment Claims is clearly a data that is on the radar screen of the Fed. So, it impossible not to be read to pounce on an opportunity if it happens.
So at about 9:27pm, I decided to put in a straddle trade with the following details: –
EURUSD – 1.0651 – 1.0677 – 1.0697
GBPUSD – 1.5245 – 1.5265 – 1.5285
Unemployment claims came out FLAT at 271K versus expectations of 272K.
I withdrew the trade 1o minutes after the announcement as rates were not going anywhere.
Since the October FOMC rate decision did not come with a press conference, the entire financial markets was looking towards the minutes to garner an idea of what happened in the closed door meeting among the Fed governors and Yellen.
There was a fair amount of noise in the media though, it seemed somewhat muted.
In any case, I stayed up and at 2:55am, I placed the following trades: –
GBPUSD – 1.5197 – 1.5217 – 1.5237
EURUSD – 1.0618 – 1.0638 – 1.0658
USDJPY – 123.27 – 123.47 – 123.67
As it turned out, the minutes lacked luster, rates did not move anywhere.
10 minutes after 3am, I decided to withdraw the three straddle trades.
What a disappointment!!!
The GBPUSD is trading at the low range of the 1H price chart.
If the estimate GDP comes in better than forecast, then, I am confident that there will be a significant breakout higher. If poorer, then, it may test 1.5030, the last low during the first week of November.
Let’s see at 5:30pm Asia time?!
I am born in the Year of the Tiger.
The Panthenon Investment Group 