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Tag Archives: eurusd

FOMC is fixated on inflation and jobs creation and early this evening was the US; Retail Sales and CPI, which I felt would be a highly volatile event data.

So at about 8:14pm, I decided to put on my straddle on the EURUSD and USDJPY with the following details: –

EURUSD

Stop if Offered at 1.1170, Spot at 1.1202, Stop if Bid at 1.1230

USDJPY

Stop if Offered 109.90, Spot at 110.28, Stop if Bid at 110.58

SLs all established at 30bps away.

As it turned out CPI and Retail Sales bombed!

Both my EURUSD and USDJPY were triggered.

I followed the market till about 11pm and decided to square off my positions as follows: –

EURUSD squared at 1.1276

USDJPY squared at 108.97

Trading profit; USDJPY = 0.93yen and EURUSD = 46bps

Not bad, if I may say so myself.

After ADP superby performance of 253K versus forecast of 181K, Wall Street and Main Street were anxiously awaiting NFP tonight.

Then again, there were many times when NFP surprised us all with a weaker number.

I decided to play my straddle to capture the market either way: –

Bought a EURUSD Put Option expiring Monday, June 5th; Spot 1.1215 and B/E 1.1189

Bought a USDJPY Put Option expiring Monday, June 5th; Spot 111.59 and B/E 111.26

As it turned out, the NFP number came in considerably weaker at 138K versus forecast of 181K and previous month was also adjusted lower.

The EUR strengthened agaisnt the USD, so my put option was useless.

However, the JPY strengthened against the USD and put my USDJPY put option into the money.

I decided to square the USDJPY put option at 110.57.  It was sufficient to offset the cost of both the options and left me with a decent 36 bps trading profit.

Yesterday, thought the NY Empire State Manufacturing PMI would be a volatile event.

So, placed two straddles; one EURUSD and the other USDJPY.

Unfortunately, despite the weak data, EUR and JPY hardly moved. I believed the world is on edge about the tension between North Korea and the USA.

So I withdrew both the straddle trades.

I really did not know which way the market is going to move but there was enough buzz in the markeplace to generate sufficient volatility to do my straddle.

At about 1:56am Singapore time I decided to place two straddle trades with the following details: –

EURUSD; Stop if Offered 1.0600, Spot at 1.0630, Stop if Bid 1.0660

USDJPY; Stop if Offered 114.23, Spot 114.53, Stop if Bid 114.83

All SLs at 30bps away.

I decided to square the USDJPY 3 minutes after the announcement at 113.70 and the EURUSD 5 minutes later at 1.0690.

Trading profit of the USDJPY was 0.53yen and EURUSD 30bps.

Not too bad, was hoping for a bigger move, then again, we should be thankful for good and safe trading profits.

 

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

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.

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

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

As the Fed continues to eyeball the US economy both from the manufacturing as well as the services sectors for growth and job creation, tonight’s ISM Non-manufacturing PMI would be an important data to look out for.

I decided to put on my straddle with the following details at 9:55pm: –

EURUSD  –  Stop if Offered; 1.1130, Spot at 1.1162, Stop if Bid; 1.1190, with corresponding SLs at 1.1150 adn 1.1170

USDJPY  –  Stop if Offered; 102.90, Spot at 1o3.26, Stop if Bid; 103.40, with corresponding SLs at 103.10 and 103.10

The data came out softer at 51.4 versus expectations of 55.4

Major grinded upwards against the dollar.  Both my trades was triggered.

I squared the positions as follows: –

USDJPY at 102.17 for a trading profit of 0.73 yen.

EURUSD at 1.1243 for a trading profit of 53bps.

All in all, not too bad, can’t complain.

Alot of noise today about the NFP, most banks forecasting a lower number than expectations of 180K, except for Barclays who is bullish at 200K.

History dictated that August was an inaccurate month, with numbers usually lower than forecast 8 out of the past 11 years with more than 50% adjustments later.

I decided to do my straddle on both the EURUSD and USDJPY with the following details: –

EURUSD; Stop if Bid at 1.1240, Spot at 1.1280, SL at 1.1220

USDJPY; Stop if Bid at 103.10, Spot at 103.45, SL at 103.30

As it turned out the NFP was 150K versus forecast of 180K, unemployment inched up to 4.9% versus 4.8%, average hourly earnings was slightly softer at 0.1% versus 0.2% and labor productivity was significantly lower at -0.3% versus 0.2%.

The USD moved higher against the majors initially, but seemed to lack the legs.

Both my trades was triggered, unfortunately, there didn’t seem to be much of a follow through as financial markets digested the data and probably felt that it was relatively unexciting.

I decided to square of my trades as follow; USDJPY at 103.00 and EURUSD at 1.1230.  I am pretty much ALL SQUARE……..no blood!

What a disappointing night, should have gone out partying!!!  Hahahahahaha…….only joking, as professional traders, if there is a trading opportunity we must be in front of the screen, we need to be there, to hopefully, capture the market opportunity.

Done for the week!

Here’s wishing everyone a great weekend.