After a slightly more hawkish FED then had been anticipated, we had a welcome move up in the Spreads, which I had been buying all the way down. It gave me my out luckily, and my out in Short Sterling, which was a Tedious hold. Luckily enough I got out this morning, because at 10am UK time, Eurozone Flash CPI estimate came in at 0.7 with an expectation of 1.1%, a big miss! This massive miss had prompted many to forecast a potential cut in the refi rate in December by 25 bp. This intern gave the Euribor a big bid and Spreads dropped, which gave another nice opportunity to load up long again. There were quite a few 5s available in Dec14Mar15 which I think was a bargain price, as well as 11s in Dec15Mar16 which was good value in my opinion. After a strong Chicago PMI out of the States we then pushed back up in these spreads giving 2 tick profits for all 3 months spreads, although I only took 1 tick, but either way it was a much better day of action then what we have been used to this week, with all the low volume drifting.
October in general has been a very tough month, I managed to make a profit, but not many big up days, many small £100-£300 quid days, but they all add up, and I patiently wait for the good volatility, which could arise next week as we get into the slew of data which is coming out, plus ECB rate decision which will be interesting in light of this CPI number.
October in general has been a very tough month, I managed to make a profit, but not many big up days, many small £100-£300 quid days, but they all add up, and I patiently wait for the good volatility, which could arise next week as we get into the slew of data which is coming out, plus ECB rate decision which will be interesting in light of this CPI number.
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