When the MPC votes came out with a 7-2 vote to stay with 2 wanting an increase in interest rate for the UK, the GBP shot up.
I squared at 1.6675 for a trading profit of 30bps.
Later on it came down and stabilized at about the 1.6640s range.
Category Archives: Trades
Fundamentals and technicals was pointing to a resurgence of the GBP, so I decided to buy a one month call option expiring Oct 15th struck at 1.6160, premium of 118bps, a breakeven of 1.6278.
I squared the position on October 19th at about 5:40pm at 1.6485 for a whopping 2o7bps trading profit.
Ladies and Gentlemen………….this was a super yummy trade!!!!!!
Yesterday afternoon, the GBPUSD looked ripe for a long position, given the previous less than positive US news. I was betting on alittle more momentum to come through to the GBP since the low of 1.5880 on Oct 15th.
So I executed a 1 day call option at the strike of 1.600, premium of 48bps and squared the position today at 1.6100 for a trading profit of 52bps.
On Tuesday afternoon was watching the GBPUSD, the Ichimoku, MA and Stochastics was calling for a short on the GBPUSD, so I did a short on the GBPUSD.
I followed the trade it about 3 hours later and squared the position at 1.5930 for a trading profit of 50bps.
Executed a 3 day call option on the GBPUSD striked at 1.6170, premium of 40bps and a breakeven of 1.6210.
As it turned out, I lost!
Well, it was purely one of those ‘gut feeling’ trades which turned out to be wrong.
There was so much talk leading up to the NFP today. My gut feel told me that it would be a market mover……….hmmmm……which way would be the real question?!
I felt that the NFP number would come out, as the summer months tend to post stronger numbers.
So I decided to place Stop if Offered trades about 20 bps OTM from the spot rates of GBPUSD, EURUSD and AUDUSD.
5 minutes after the announcement that NFP was 248K and unemployment rate at 5.9%…..Wow………market just sold off on the majors between 50bps to 80bps.
I immediately squared off my three trades and locked in a trading profit of 103bps.
I am now done for this week. Will update the earlier trades for the month of August and September next week.
Here’s wishing all a great weekend.
On September 8th at about 8:30pm Singapore time, I noticed a pattern emerging in my ichimoku and stochastics; the AUDUSD was starting to turn down on the MA on the 15M chart earlier at 5pm and then it also cut down on the MA for the 1H chart at about 8:30pm.
This tells me that a short term confirmed short trade in the AUDUSD was emerging. So I short the AUDUSD at 0.9330 and carried the trade till this morning and decided to square off the trade at about 11am at 0.9170 for a whopping trading profit of 160bps.
This is a classical good technical trade.
I decided to short the GBPUSD after the ECB rate decision at 1.6440 to try and compound the move down for the European economies.
Just squared the trade at 1.6400 for a trading profit of 40bps.
So much talk leading up to today’s ECB rate decision and press conference. I decided to to take a chance, it’s pure gut feel, I bought a put option for one day expiring tomorrow Sept 5 with a premium of 44bps, strike at 1.3150 and breakeven at 1.3106.
What a surprise!
The ECB announced cuts on the main interest rate and also went negative on the deposit rate, sending the Euro crashing, I just squared off the trade at 1.3026 and was happy with a 80bps profit.
This is the trade all of us have been waiting for!
This afternoon, the Markit Mfg PMI came out weaker at 55.4 versus forecast of 57.2 and lower than previous month of 57.2.
What is comforting is that the manufacturing PMI has been posting above 50 levels since this year. However, I believe the market will still take the lower PMI negatively.
So I decided to do a quick trade by shorting the GBPUSD at 1.6865 and squared at 1.6835 for a trading profit of 30bps or 3%.
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