Following from my thoughts for the GBPUSD earlier, I went ahead to place a buy limit order at 1.5330, SL at 1.5310, while spot was at 1.5302.
UK Services PMI came out very strong at 54.9 versus expectations of 53.1. Immediately, the GBP spiked up triggering my limit order, I followed the spike till I saw the stochastic peaked and sold at 1.5370, the high was 1.5371, it is now trading at 1.5356.
Locked in a yum yum trading profit of 40bps or 0.26%.
This morning at about 1130am Abe was caught saying to the press that he will SLAY the DEFLATION MONSTER and do everything to implement fiscal and monetary policies to achieve this objective.
I decided to quickly short the USDJPY at 100.24 and when the market responded, I took profit at 99.80, it went to a low of 99.43. Nonetheless, I made a tidy profit of 44bps or 0.44%.
AUDUSD hit a high during NY session at 0.9790 after after a two wave move once at 10pm and another time at 11pm Singapore time.
Since then, it has been retracing all the way down to the current 0.9715 level.
I SHORT the AUDUSD this morning at 0.9745 and squared the position at 0.9720 for a quick trading profit of 25bps or 0.25%.
I believe RBA will keep rates the same and will have nothing exciting to say in the press conference. I believe the RBA and the Aussie government are stuck in a corner as to how to re-energize the economy.
The Aussie economy has been reliant for too long on resources to fuel its growth in the past 5 years. It has also relied heavily on foreign capital and domestic capital to fuel the housing market.
Let’s not forget that during the worse of times the past 2 years, the Aussie has been trading between 1.03 and 1.05.
I believe we are passed the bottom, and in the near term, the AUDUSD will range bound between 0.96 and 0.98. We need to see some credible news from the Aussie government as to how they are going to structurally change the economy domestically to fuel growth.
The danger is alot of central banks are still holding AUD, when the situation in Europe and the United States is better, capital will flow out of Australia back to the home countries and it will put downward pressure on the AUD.
I had a hunch the ISM Manufacturing number for the U.S., would come in weaker than expectations.
So, I placed a LONG limit order at 1.2970 with a SL at 1.2950 when the spot was at 1.2962.
When the data came out weaker at 49 versus expectations of 50.6, the EURUSD pushed upwards, triggering out limit order at 1.2970.
We squared the position at 1.3014 for a trading profit of 44bps or 0.33%.
I am done for tonight, back to watching Korean drama and keep my wife company.
Goodnight all, see you tomorrow.
Today, was a day the market was looking out for the UK PMI data. Gladly, the Eurozone PMI data came in slightly upbeat.
Believing that the UK data will also come in slight brighter, I put in a LONG GBPUSD limit order at 1.5260 when the spot was trading at 1.5240. I purposely put it 20bps out of the money, just in case I was wrong. I also had a SL at 1.5245.
When the data came out better at 51.3 versus expectations of 50.3, the GBP started to take off, triggering my order at 1.5260, as it reached 1.52780, we squared the position.
Ultimately, it hit a high of 1.5289 and has since come back down to 1.5265.
We locked in trading profits of 20bps or 0.13%, not a bad quick scalp for the day.
Today was critical day; preliminary GDP and unemployment claims. My hunch told me that the numbers could be weak, so when the EURUSD was trading at about 1.2940 at 8:15am Eastern time, I decided to put in a LONG limit order at 1.2970 with a SL at 1.2950 if things were to go wrong.
When 8:30am rolled around; the GDP came in at 2.4% below forecast of 2.5%, and unemployment claims was higher at 354K versus expectations of 342K.
The EURUSD within 10minutes triggered by limit LONG order at 1.2970 and within the next hour it hit 1.3030 which was my take profit level. We locked in trading profits of 60bps or 0.46%………..great trade! Of course, it went to a high of 1.3060 an hour later, but then again, we can’t always buy at the bottom and sell at the top.
What’s important is to execute a prudent strategy.
Goodnight all, I am going to play golf tomorrow, so no trading for me.
Last Thursday, 23 May 2013, I went LONG EURUSD at 1.2845 immediately after the announcements of the various PMIs for Germany, France and Italy, they were all generally slight improvements.
Initially, market moved slightly, I felt it was good for a 4obps pop upwards, then, it started moving up to 1.2900, I put an order to square the position at 1.2900 and it was taken out as it went higher to 1.2908. I locked in a trading profit of 55bps or 0.42%.
It went higher into NY trading session but I was at the time out for dinner.
I saw the fast and slow stochastic signalling a buy, so I went long at 0.9637 and squared the trade 5 mins ago at 0.9670 for a trading profit of 33bps or 0.34%.
I was so bored, decided to do a quick scalp; short the AUDUSD at 0.9645 and squared the position at 0.9635 for a 10bps trading profit.
Good morning to all, just when I was lamenting about a lost opportunity in the AUD yesterday, I also knew that in the forex markets, another opportunity would present itself.
It did.
This morning.
I Long the AUDUSD at 0.9765 during Asian time after the release of the RBA minutes to ensure no curve balls. In fact, when the RBA minutes came out AUD tanked to 0.9750, but I waited till the rebound happened and some stability was seen in the charts. Then, I Long the AUDUSD at 0.8765 at about 9.35am and just squared the position at 0.9810 at 11:30am.
I made a trading profit of 45bps or 0.45%.
Thank you AUD!
CPI data for the GBP this afternoon at 4:30pm, I believe it will be a market mover………….let’s see.
Have a nice lunch you all.
I am born in the Year of the Tiger.
The Panthenon Investment Group 