British Pound came under more pressure in last two days, in spite of some positive fundamentals. While on Thursday it simply mimicked broader moves of other currencies, which also fell against USD and JPY, today it showed a weakness of its own. UK Gross Domestic Product estimate for the 4th quarter was revised. Original numbers suggested growth of 0.1%, but after review the new number stands at 0.3%. One could expect positive market response. After all, this appears to be positive news. Well, seems it is not enough and GBP shed some weight. Not that it has all that much left to shed. It has been dropping steadily for few weeks now, reaching as low as 135 against JPY, almost the lowest level in a year.

It is not the first time when major numbers, like GDP, have been revised. This happened recently in US and United Kingdom officials corrected GDP figures last year, too. So we shouldn’t be surprised any more that this is happening. Perhaps the only lesson here is that markets don’t seem to be paying attention to this data. maybe it’s because it is so late after the fact that it loses relevance. After all, this is not really fresh data and attention of markets has a short time span. Something new is needed.

Commodity Dollars fell as well, mostly on Thursday. Today these moves have been correcting and at this moment the making a little bit of run. Will have to review charts over the weekend and try to figure out what the next move is. This week I’ve been selling them, against Japanese Yen and Euro. See last post. On Thursday I had a few more of these trades, with some carried over into Friday.

Aussie Yen drifted sideways for some time, but eventually broke support at 79.70 or so. Nice drop followed. Not as severe as the sell off earlier this month, but 100 pips is not bad, either. That’s what this trade produced. had I waited a little longer, another 35 pips could have been realized, but at the time it looked to me as if market was turning. Regardless, nothing to complain about.

I also went ahead with another trade in EUR-CAD. Got in on a breakout above previous high. Fast initial move, followed by consolidation, almost exactly like the previous one. Here I also overestimated potential, or maybe just didn’t give it enough time. Could be both, but since I don’t want to carry this trade into the weekend, position was closed about an hour ago for 50 pips profit. Better than nothing. So, week turned out to be not too shabby, even with less trades and smaller sizes. Hope it keeps up. Have a great weekend!

Mike K.