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Weekend Update. Weak Manufacturing Data From The UK. Cable Tests 150 Level.

Weak Manufacturing Data From The UKCable took another leg lower yesterday after weak UK manufacturing data and mortgage approvals saw it test the 15000 level. The last time Cable had been at that level was in July 2010.

Analysts at BNP Paribas expect the BoE to announce GBP 25bln in QE next week, citing the weak Manufacturing PMI data. So new lows could be seen next week.

I am not a news trader so its irrelevant to me what market moving news comes out, as long as i am not in a trade when the news comes out that is. I have a really good news feed though, so i am usually well aware of what market moving news is coming out.

Euro Dollar made a test of the 130 level yesterday which as a bit of a surprise as better than expected LTRO repayments came out that should have seen it go higher, but i think the Italy election problem is weighing heavy on the Euro at the moment. So we could see further downside until that is resolved. I don’t think Euro will go much lower initially though, as the new trading range is supposed to be 130 to 140. I personally think the range is more like 125 to 135, and as the US scale back on QE we could see 125 on Euro Dollar easily.

I took a hit on a Euro long trade yesterday which was a bit of a surprise. I saw a nice little set up to the long side which i took. We also had the better than expected LTRO repayments out which should have added a bit more weight to my position, but it did not work out and i got stopped out. I knew exactly why the trade failed though, and there was nothing i could have done about it, but i have had another good week overall.

Ozzy Dollar made another test on Wednesdays low yesterday after a massive spike on Thursday in the Asian session. I managed to get 20 pips out of AUD yesterday which was pretty good considering its trading range. We are coming up on a key level on AUD at 10150 so we should see it test that level sometime next week.

Euro Yen was trading sideways for most of the week, so not a lot to say about that one really. We did take it short on Monday for 110 pips, but apart from that we have not had a trade on EJ this week.

Here is the weekly update.

Monday was a great day. Mondays can be pretty quiet but not this week, we took 215 pips off 3 trades on Monday. We took Euro short at 13310 down to 13235 for 75 pips. We also took Euro long at 13192 up to 13222 for 30 pips. We also took EJ short at 12500 down to 12390 for 110 pips. EJ moved over 500 pips down on Monday so if we had held the trade we could have taken 500, but hindsight is a wonderful thing. 🙂

Tuesday we took 3 trades for 120 pips. We took Cable long at 15154 up to 15214 for 60 pips. We also took Euro long at 10339 up to 10379 for 40 pips. We also took AUD long at 10201 up to 10221 for 20 pips.

Wednesday we took 2 trades for 135 pips. We took Cable long at 15090 up to 15160 for 70 pips. We also took Euro long at 13075 up to 13140 for 65 pips.

Thursday we took 2 trades for 102 pips. We took Cable short at 15202 down to 15155 for 47 pips. We also took Cable long at 15155 up to 15210 for 55 pips.

Friday we took 3 trades. We took Euro long at 13025 which we got stopped out of for 22 pips. We also took Cable long at 14999 up to 15040 for 41 pips. We also took AUD long at 10187 up to 10207 for 20 pips.

Total trades 13. 12 winners and 1 loser. Total pips 611.

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