Knowing that GBPUSD always move earlier than the time of data announcement, I decided to put my straddle earlier at 4pm.
All central banks are looking at tightening monetary policy and therefore CPI is going to be closely looked at as an indication of inflation.
My straddle with the following details: –
Stop if Offered; 1.3080, Spot; 1.3115, Stop if Bid; 1.3145
As it turned out CPI came in weaker at 2.6% versus forecast of 2.9%.
My Stop if Offered was triggered.
It’s 4:37pm and I just squared my position at 1.3025 for a trading profit of 55bps.
Not bad, thank you GBPUSD, at least, I managed to make back for some of the losses on the EURUSD put option and USDJPY call option.
More trading opportunities this week when ECB is front and centre
The Panthenon Investment Group 