This was going to be the first set of important data to garner the impact of Brexit on the UK.
Today was Markit Flash Mfg and Services PMI.
At about 4:27pm, after the GBP had run up about 50+bps since 3pm, I decided to do a straddle trade, a small trade size on the Long position and bigger position on the Short position as follows: –
Stop if Offered; 1.3243 Spot; 1.3273 Stop if Bid; 1.3310 with corresponding SLs at 30bps off my levels.
The data came out mixed.
Mfg PMI came out stronger at 49.1 vs 48.9, but Services PMI was much weaker at 47.4 vs 48.9. Clearly, the banking and financial services sector was hit badly.
The overall composite was down 47.7 vs 52.4.
Immediately, my short position was triggered at 1.3243. I quickly closed of the Long portion of the straddle.
I followed the market till about 4:56pm when, the GBPUSD had already dropped by 100bps. I squared my position at 1.3170 for a trading profit of 73bps. Not bad at all!!!
The current spot is trading at 1.3125.
I am now going to go with my wife for a durian party at Marina Bay Sands. Enjoy your weekend everyone.
The Panthenon Investment Group 