Alot of noise was buzzing in the media, some FIs were expecting big moves and other lesser moves.
Mostly all in consensus that Draghi will give out something better this time around, then, again, some felt that it will be a non event like the last time. Volatility also spiked up and shorts we scaled back compared to December 2015.
I decided to put in a wider straddle with the following details at 8:40pm: –
EURUSD – Stop if Offered; 1.0930 SL 1.0950, Spot; 1.0966, Stop if Bid; 1.1000, SL 1.0980
As it turned out, the refinancing rate was cut to 0% from 0.05% and the widely expected cut in deposit rates of 0.10% to negative 0.40% from -0.30% was offered and asset purchases we expanded from EUR60Bn to EUR80Bn.
EURUSD went south immediately to 1.0870 and held there for a while and then a few minutes ago, went slightly further down to 1.0835, I decided to square the position at 1.0860. Spot is now 1.0867. Locked in trading profits of 70bps!
Thank you Mario Draghi!
Will I be participating in the market later during the press conference? Don’t know, maybe and maybe not, but certainly I will be in front of the screen and listening into the press conference.
The Panthenon Investment Group 