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First trade for 2017; Theresa May

Tonight, Theresa May is addressing the nation on how she is going to implement Brexit.

She mentioned that the Government will put the final Brexit deal to a vote in both houses of parliament.

Does this mean that there is a possibility of a repeal in the Brexit?

Market seems to like what is it hearing from Theresa May.

I decided to place a straddle when her speech started with the following details: –

GBPUSD: Stop if Offered at 1.2120 (SL 1.2140), Spot at 1.2158, Stop if Bid at 1.2175 (SL1.2145)

My Bid was triggered and I rode it up till I squared the position at 1.2325 (High was 1.2346) for a trading profit of 150bps!!!

Thank you Theresa May and what a trade to start the Year of the Rooster!!!

14 Dec 2016; FOMC Decision

Long USDJPY at 115.31 and squared at 116.40 for a trading profit of 1.09yen.

Short GBPUSD at 1.2696 and squared at 1.2616 for a trading profit of 80bps.

5 Dec 2016; Long EURUSD, Long USDJPY

Long EURUSD at 1.0586 and squared at 1.0645 for a trading profit of 59bps.

Long USDJPY at 113.57 and squared at 114.14 for a trading profit of 57yen

1 Dec 2016; Long EURUSD and Short USDJPY

Long EURUSD at 1.0595 and squared at 1.0620 for a trading profit of 25bps.

Short USDJPY at 114.25 and squared at 113.95 for a trading profit of 30yen.

30 Nov 2016; Short EURUSD

Short EURUSD at 1.0634 and squared at 1.0598 for a trading profit of 36bps.

30 Nov 2016; Long USDJPY

Long USDJPY again at 112.50 and squared at 113.66 for a trading profit of 1.16yen

30 Nov 2016; Long USDJPY

Long USDJPY at 112.50 and squared at 112.90 for a trading profit of 30yen.

29 Nov 2016; Long EURUSD

Long EURUSD at 1.0595 and squared at 1.0653 for a trading profit of 58bps.

27 Oct 2016; Short USDJPY

Just a quick update on my blog, I had twittered earlier that I short the USDJPY twice; once at 104.75 and another time at 104.93 for an average cost of 104.84.

USDJPY came off from a high of 105.44 before midnight Asia time on Friday and by 2am in the morning it was down to 104.55 and closed at 104.63.

Let’s see what this week brings for the yen, however, I must admit that I am not entirely comfortable with FOMC rate decision on Thursday morning.

I know Yellen won’t raise interest rates in a FOMC decision date that has no press conference, will cause way too much irrational volatility and also so close to the election.

She will raise interest rates and I do believe it will be in December. However, two weeks ago, in a speech she mentioned that it is alright for the economy to overheat a little before the Fed steps in to curb it by raising interest rates. She felt that there was no real danger in terms of significant negative impact for the US growth to run away a little.

This was something I discussed in one of my earlier blog post.  The USA is such a mature economic dinosaur, just how fast can the economy run if it wishes to overheat? 3% or 4% GDP, but that is fine.

Anyway, I will probably square my yen position before Thursday, simply because I do not wish to get caught on the wrong foot.  After all, all my expectations is 0.5 yen or slightly better and I am out.

27 Oct 2016; squared USDJPY at 104.60

Woke up this morning and before making breakfast checked USDJPY, it seemed to be peaking at 104.60+, hit a high of 104.68.

I decided to square my position at 104.60, locking in a trading profit of 0.45 yen.  Not bad!

In the last 24 hours, managed to lock in 1.04 yen just trading the channel from 102 to 105. I believe this channel will continue for a little longer.

Let’s see. As they say, put you monies where you mouth is……(“,).