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Tag Archives: UK Mfg PMI

Ever since, Brexit has been looming over the UK, all data attributed to manufacturing and services has been on the radar screen.

This evening was the UK Mfg PMI.  I didn’t really know which way it was going to swing, but I could sense that it would be a weaker data, so I placed a one leg straddle with the following details: –

Stop if Offered at 1.2566, SL at 1.2586 and Spot at 1.2589.

The data came our flat at 55.9 same as forecast, GBPUSD hardly moved, so I withdrew the straddle trade.

 

After Brexit, any data that can give an inclination to the economic health of the UK would be important.  This afternoon, the UK Manufacturing PMI would be one these important indicator.

Markets was expecting 49.1 slightly better than previous month of 48.2.

I put my straddle with the following details: –

Stop if Offered; 1.3120, Spot at; 1.3146, Spot if Bid; 1.3170

Corresponding stop losses at 25 bps away.

As it turned out, the number came in very strong at 53.3 which took markets by surprise, the GBP spiked up at triggered my Bid trade at 1.3170.

I squared my trade at 1.3242 for a trading profit of 72bps.  Not too bad for the first day of September.

The spot is now 1.3250.