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Daily Archives: September 1st, 2016

After, Yellen’s comments last Friday at Jackson Hole and the subsequent correction in the majors against the USD, I feel levels are now more reasonable reflecting the relative economic health of the countries. However, I believe, the GBP and JPY have more downside adjustment to be made.

Take a look at the 4H USDJPY, the JPY is now just under the 38.2% level, I believe there is more room for the JPY to weaken.

4H usdjpy

After Brexit, any data that can give an inclination to the economic health of the UK would be important.  This afternoon, the UK Manufacturing PMI would be one these important indicator.

Markets was expecting 49.1 slightly better than previous month of 48.2.

I put my straddle with the following details: –

Stop if Offered; 1.3120, Spot at; 1.3146, Spot if Bid; 1.3170

Corresponding stop losses at 25 bps away.

As it turned out, the number came in very strong at 53.3 which took markets by surprise, the GBP spiked up at triggered my Bid trade at 1.3170.

I squared my trade at 1.3242 for a trading profit of 72bps.  Not too bad for the first day of September.

The spot is now 1.3250.