We short GBPJPY at 150.80 and squared the position at 150.20 for a trading profit of 60bps0.40%
Tag Archives: forex
Asia was US Dollar gaining ground on most currencies: –
EURUSD: Open 1.31004, High 1.3106, Low 1.3063
AUDUSD: Open 1.0515, High 1.0527, Low 1.0415
GBPUSD: Open 1.5373, High 1.5380, Low 1.5307
USDJPY: Open 98.54, HIgh 98.54, Low 97.54
If one had traded the crosses, that is, AUDJPY, EURJPY, you would have doubled the impact of the move in the underlying currencies.
5pm Singapore time; Eurozone trade balance
8:30pm Singapore time; Empire State Manufacturing
10pm Singapore time; NAHB Housing Index
This morning we saw a beautiful set up on the technicals to short EURJPY and we did at 129.
We squared the position at 127.90 for a 1.1bps or 0.86% trading profit. The current spot has recovered slightly to 128.22.
We were swindled by the market last Thursday and Friday.
Data out from Australia was weak; employment weaker, unemployment higher.
PM Gillard commented that there was room for RBA to lower rates.
All these is suppose to put pressure on the AUD, but it didn’t, instead it powered all the way up to 1.0582. We believe it’s because the direct AUDCNY started on Thursday and we were just fighting the flows.
We were convinced that AUD overshot last week on Thursday and Friday, despite the bad economic data.
This morning we short the AUD JPY at 103.50 based on technicals and then when the GDP and industrial production for China came in dismal at 10am Singapore time, the AUDJPY collapsed, we squared off our position at 102.00, the low was 101.65. We made a trading profit of 1.50bps or 1.47%.
We are vindicated from losing monies in the AUDUSD put option last week!
We bought a put option on the AUDUSD this morning on the back of poor Westpac consumer sentiment number.
Let’s see what happens in the next 24 hours.
We executed three call options during the month of March; AUDUSD, EURUSD and GBPUSD, we won in the AUD and GBP and lost in the EUR. Our absolute return on equity was 18.4%.
Our accumulative ROE till end February was 27% and including March, it brings out absolute ROE to 45.4% year to date.
Our sell order of 1.05 was triggered last night during New York time. Our realized trading profits is 135bps or 1.28%.
The non farm payroll numbers was clearly a surprise at 88K, when the market was expecting about 198K. This was enough to initiate a selloff in the US Dollar, the Euro and Sterling rallied more than 100bps respectively. The Yen moved more than one big figure still on the tails of Kuroda-economics.
I missed the non-farm payroll opportunity as I was out with my wife for dinner, Spanish tapas and a great bottle of spanish wine from the rioja region.
I will make an overall assessment this weekend with some thoughts going into next week.
The Panthenon Investment Group 