In what was a surprise move BoE head Carney signaled that rates were likely to be raised earlier which led to a 120 point move up in Cable and a 20 tick drop in the front end of the short sterling curve.
It was a very busy day in the Short Sterling space, and the open was quite wild. Gaping down 15-20 ticks I was looking to fade the initial move which turned out to be the wrong move and before I know it they spiked Short Sterling down a further 8 ticks putting me down big. I shorted into the move and as the middle to the back end of the curve flattened out as much of the steepening was done around the front end, I managed to make back 70% of the loss, but it was disappointing as it was an opportunity lost as there was plenty of action to have a good day.
Despite this however, it is likely that all UK data will be more in focus then before and we will likely get more action in Short Sterling which can only be a good thing.
Next week will be interesting for sure and hopefully there is some follow through. Big data to look out for is UK inflation data and retail Sales. Any strong number could really bring out the big players.
It was a very busy day in the Short Sterling space, and the open was quite wild. Gaping down 15-20 ticks I was looking to fade the initial move which turned out to be the wrong move and before I know it they spiked Short Sterling down a further 8 ticks putting me down big. I shorted into the move and as the middle to the back end of the curve flattened out as much of the steepening was done around the front end, I managed to make back 70% of the loss, but it was disappointing as it was an opportunity lost as there was plenty of action to have a good day.
Despite this however, it is likely that all UK data will be more in focus then before and we will likely get more action in Short Sterling which can only be a good thing.
Next week will be interesting for sure and hopefully there is some follow through. Big data to look out for is UK inflation data and retail Sales. Any strong number could really bring out the big players.
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