Just another update to let you all know what’s going on. The cable has continued to fall today, which is not necessarily good for me as I closed my cable sells yesterday but it’s nice to see that many of you that have cable trades of your own following discussion forums have made excellent profit. One person asked me why I closed it. The truth of the matter is that yesterday it was already in significant profit and I did not have time to monitor trades today. Therefore I decided it safer to close it a bloc in the profits for the benefit of all of us. I did not want to chance leaving an open and being unable to manage it especially with Gov Carney speaking earlier today.
With regard to other trades. We currently have two buy positions on the USDJPY and one sell position on the AUDUSD. While these trades are not exactly having a stellar performance at the moment, I have extreme confidence that they will turn around and that we will end the week with a very nice profit. The JPY has benefited slightly today is a haven currency following of uncertainty in the market and the shooting down of a Russian jet by Turkey. In addition, the dollar has spent slightly weakened by institutional repositioning and the strengthening of oil prices following comments of Saudi Arabia that it will help stabilise global energy markets. All of this has caused some volatility but it does not change the fact that at the moment the fundamentals support strengthening USD.
US GDP matched expectations showing growth of 2.1% quarter on quarter and while Corporate profits were down 1.6%, GDP price index beat expectations at 1.3% and the Goods trade balance was better than expected. So there should be some volatility but nothing too significant. For now the account remains safe and in good condition.
I am confident that tomorrow’s durable goods data from the United States will fundamentally support our positions and help us make this week even more profitable. I hope you have all been having an excellent day,