Today was another lively press conference from the ECB with good volume and volatility accompanying the session. Sure makes a change to the very quiet ones we had for the best part of last year.
Here are some key remarks from Draghi Press conference:
Draghi says inflation has eased in recent months.
Draghi says accommodating ECB policy will support economy.
Draghi says will monitor money market conditions
Draghi says downside risk to inflation from higher Forex.
The Euro took quite a hit on these comments as we are trading 1.3380 as I write as opposed to 1.3530 just before he spoke.
Euribor Spreads as you would expect came off slightly on the back of this news as Euribor Outrights pushed up 7 fat ticks for the day. It was a messy day of trading as the volatility took as it gave. With flow sometimes easy to ready it was easy enough to put on some good spreads, but at the same time I was left hanging many times and ended up taking losses too.
Overall I maintained a long bias as we were coming off in the front months, and I was continually shorting 9s in Mar14Jun15, as this seemed very high to me. And this paid off as we came off, but only by half a tick.
But money is money!
Below is the composition of today's trading.
Here are some key remarks from Draghi Press conference:
Draghi says inflation has eased in recent months.
Draghi says accommodating ECB policy will support economy.
Draghi says will monitor money market conditions
The Euro took quite a hit on these comments as we are trading 1.3380 as I write as opposed to 1.3530 just before he spoke.
Euribor Spreads as you would expect came off slightly on the back of this news as Euribor Outrights pushed up 7 fat ticks for the day. It was a messy day of trading as the volatility took as it gave. With flow sometimes easy to ready it was easy enough to put on some good spreads, but at the same time I was left hanging many times and ended up taking losses too.
Overall I maintained a long bias as we were coming off in the front months, and I was continually shorting 9s in Mar14Jun15, as this seemed very high to me. And this paid off as we came off, but only by half a tick.
But money is money!
Below is the composition of today's trading.
Good volatility again. I focused on H14 and M14 9 months and 12 months spreads. First short, then long and finally short to end the session.
ReplyDeleteI also made something in short sterling at 9:30 London Time. Here's my day:
http://s4.postimage.org/udieoefx9/image.jpg
Btw, al flies went to negative again this week so it was an overreaction of some outrights and the yield curve comes back to its shape... a shame that my risk manager forced me to cut some positions last week.
Regards!
Nice going, some good PnL there. I saw the negative prints on the fly, was a good opp there, but I just stuck to 3 and 6 months calendars. Hoping for some more volatility!
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