Wednesday, 11 September 2013

UK Employment data is good, but someone had it early!

Cable popped to over 1.58 today on the back of better employment data out of the UK. Calimant Count Change reduced by 32.6k against expectation of a reduction of 21.2k. Employment rate went down one notch to 7.7 from 7.8. This lead to an initial push up in the Yield curve as you would expect as Spreads pushed up, before fading the move which provided a great opportunity to get out my shorts. Short Sterling Yields have pushed up massively since the BoE inflation report and I think it should start slowing down here, as the BoE still insist no rate rises are immanent.

As for the action in Cable, there was a gradual uptrend the whole morning and minutes before the news, over 1000 lots pushed the price up over 20 ticks, and then we had another 60 tick move on the actual data. Looks like Christmas had come early to someone as it seems to have been leaked, which is often the case with data these days.



It has been very quiet otherwise this week as far as volumes go, and it is the case like I said before about the FED meeting next week, so until then pick up what ever you can in this market, and don't push it too much.

No comments:

Post a Comment

Front month WTI Futures plunges to negative $37 as storage costs rocket

It was a move of epic proportions in the front month WTI Crude futures, the significance of which is not really known of yet, but was incre...