Well that was unexpected! It was out there but I didn't think it was going to happen given that it signifies everything is still in the dumps! I guess that's the message they are giving.
So the main reaction was in the Euro where a 200 plus pip move down was observed, as usual I saw someone pushing it down just before the number and all I can say is well done to them. Whether it was leaked or a punt, it doesn't really matter.
Euribors pushed up 15 fat ticks plus but what made this a nice report to trade was that the spreads didn't really come off to much, and it faded the move throughout the press conference. This made it easier to trade as there was plenty of volume and also we are at very low levels which made buys very compelling. I was buying all the way down, and lucked out when it pushed up. Dec14Mar15 traded as low as 4s, couldn't get that many off buy its now trading at 5s, so nice bounce there. Before the number it was trading at 5.5s so not much of a move there, but plenty of volatility to get in and out. Chart below of Jun15 Euribor.
The good thing about this type of volatility is that it gives you the chance to make back mistakes. I got caught plenty trading this, but my losses were easier to make back which always makes trading much more enjoyable.
I ended up doing over 400 RTs today so quite an expensive day, but ill take this over sideways markets any day, although I do fear now that we going to flat line for the rest of the year as rate hikes are totally of the table short term.
So the main reaction was in the Euro where a 200 plus pip move down was observed, as usual I saw someone pushing it down just before the number and all I can say is well done to them. Whether it was leaked or a punt, it doesn't really matter.
Euribors pushed up 15 fat ticks plus but what made this a nice report to trade was that the spreads didn't really come off to much, and it faded the move throughout the press conference. This made it easier to trade as there was plenty of volume and also we are at very low levels which made buys very compelling. I was buying all the way down, and lucked out when it pushed up. Dec14Mar15 traded as low as 4s, couldn't get that many off buy its now trading at 5s, so nice bounce there. Before the number it was trading at 5.5s so not much of a move there, but plenty of volatility to get in and out. Chart below of Jun15 Euribor.
The good thing about this type of volatility is that it gives you the chance to make back mistakes. I got caught plenty trading this, but my losses were easier to make back which always makes trading much more enjoyable.
I ended up doing over 400 RTs today so quite an expensive day, but ill take this over sideways markets any day, although I do fear now that we going to flat line for the rest of the year as rate hikes are totally of the table short term.
Tomorrow we have non farm payrolls which hopefully will provide some opportunities, and then we have BoE inflation report next week which hopefully will provide good volatility!
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