Yesterday, I felt that the contruction PMI would be a volatile event data following all the talk about Brexit. It would be interesting to see how the construction industry is taking to the potential exodus of expats and investors of out the UK and back to Europe.
Just before the announcement, as usual, I put in my straddle trade with the following details: –
Stop if Offered at 1.3260, Spot at 1.3280, Stop if Bid at 1.3300
As it turned out the construction pmi came out weakest in the past 13 months at 48.1 versus expectations of 51.1.
Initially, GBP didn’t collapse, however, it did later trigger my stop if offered leg and it continued to do a very very slow decline in to the opening session of NY.
I decided to square the spot position at 1.3230 for a trading profit of 40bps.
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