British Pound dominated these pages over last few days, as I was focusing more and more on buying it. Finally today it really paid off, with GBP staging biggest single day move in months. Comments started to appear that Bank of England might put on hold its asset buying program. This is yet another of conflicting news relating to the Pound, which have been hitting wires all week long. Once again British currency reacted strongly, on what media calls”renewed confidence” of possible BoE putting a halt to its quantitative easing (money printing) campaign. With one more day left in a week, who knows what will happen tomorrow?

Some confidence was also demonstrated in US with better than expected employment numbers. That was, however, short lived because of foreclosure figures, which jumped about 5% in fall. Nearly 938,000 properties were affected in the July-September quarter, compared with about 890,000 in the prior three months. Foreclosure-related filings are on a pace to hit about 3.5 million this year, up from more than 2.3 million last year. In spite of some programs to help straggling home owners, and apparent banks’ willingness to use them, creditors repossessed nearly 88,000 homes in September, up from about 76,000 a month earlier. Almost everybody connects huge foreclosure rate with unemployment.

Pound had a huge day, with EUR-GBP   finally falling by a significant margin. I mean 200 pips move in a day is a lot for this pair. Just like early in the year, during historically high volatility. Lucky for me I was playing this market on the short side and managed to capture some pips.

I was looking for a sale at 0.9365-70 level, but ready to get in on any bearish formation on 1H chart within 0.9340 and 0.9370 zone, as explained in last post. Turned out I didn’t have to wait long. As soon a last update was made I was in at 0.9342 with an objective of 0.9300. This was viewed by me as possible support are. Price broke through it easily and I was in next short trade, at 0.9282, which netted 60 pips. Price moved even lower, but without me. Altogether, good sequence.

Pound-Swissy was developing in almost identical way, only inverted. Here I made only one trade, on a more important breakout above 1.6320. This trade rode the move to 1.6430, for 110 pips gain.
Other currencies were also volatile, including JPY. I also had some orders pending here, including a buy of CHF-JPY, presented here early on in the week.

This trade has been under way for a few days now, moving ever so slowly in desired direction.  Entry was at 87.40, using 4H chart, objective 88.90. Trend finally accelerated today and my target was hit for 150 pips. Yen was weak on all fronts, loosing hundreds of pips in all pairs. About time.
When I wrote about Garage sale in UK, possible trade in EUR-AUD was suggested. I closed it yesterday at a loss.

Price broke to the upside, but retreated soon after. I managed to sit through first pull back, waiting for recovery, which was anemic. Decided to get out and took 64 pips loss. Will have try again some time later. Very busy and productive day for me, with many more trades. Some of them will be discussed here in the next post, since they have been mentioned on these pages. This update is getting way too long.

Mike K.