Short sterling

[red army]

Stumbled across this while I was doing my homework... (this is the transcript, watch the vids if you're lazy) - interesting to look at the differences between LIBOR and EURIBOR given the circumstances.

FT.com / Home UK / UK - Transcript: Ciaran O?Hagan of Société Générale

very interesting, so why if euribor is more stable an instrument than libor, why does the front month sometimes (well mid last month) still get battered from the equivilent in sterling goes??? One seems more reliable than the other so why follow? Or is it those damm amachines following the trend.........

 

[gooseman]

and again. christ on a bike-this is ridiculous.

 

[arabianights]

somehow I managed to lose shorting it

put it down to first day back at work.

but 48 ticks down - **** me!

 

[gooseman]

zero liquidity.

 

[MrGecko]

Strap your tin hats on gents, something tells me it's going to be a long week.

 

[gooseman]

strips off 40 ticks for crying out loud. bund has reversed completely/. this is a mad, mad market. and wtf is vol doing?!

 

[arabianights]

Didn't someone have to liquidate a spread on the bund today, hence strange climb?

 

[gooseman]

2/10 massive flattener. something to do with inversion notes. apparently

 

[arabianights]

yes

 

[arabianights]

You guys taken a look at open interest? Sterling is increasing in M9...

Everything else seems to be decreasing in every month, presumably people being forced out.

 

[red army]

another rollercoaster day in the bor is coming to a close...........phew!
me feels its all over sold!

 

[arabianights]

I reckon if you were a long term investor... Trichet saying he would raise rates just a "little bit" is a signal they're only intending one rate rise.

And even if they raise rates by 50%... if credit spread decreases a bit it's still a buy. So there's a convincing case to buy dec but nothing to stop it moving another 20/50/100 ticks down. Maybe stick £1pp on at capital spreads

 

[arabianights]

BBA says it's increasing number of contributors to some libor-setting panels.

Now what?

 

[gooseman]

talking about a second libor setting in us hours.

 

[red army]

talking about a second libor setting in us hours.

well good old trichet came out with the dov'ish comments and everything was unwound - this market is on a knife edge!

 

[gooseman]

ar you trading euribor. dec is still 40 ticks lower than thursday morning!!

 

[red army]

yep, and i do feel everything is over sold but because its so wippy you get stopped out. Pockets ain't deep enough......good mkts tho

 

[rols]

So there's a convincing case to buy dec but nothing to stop it moving another 20/50/100 ticks down. Maybe stick £1pp on at capital spreads

Hey steady on now.........

 

[rols]

yep, and i do feel everything is over sold but because its so wippy you get stopped out. Pockets ain't deep enough......good mkts tho

Do you mean Mr. Whippy?

May be time for a retrace on cable fairly soon. It's already down 180 today.

I took a cheeky short around 10pm GMT at 9750 with a 14 pip stop
Switched on PC at 8:30 this morning and was pleasantly surprised.

When these things work I say night trading is infinitely more preferable to day trading!

Would be surprised to see fall today much lower than 1.9550, maybe they'll be a gimme bar at S3/Fib 200% around 1.9542.

There's a low R:R trade perhaps?

 

[gooseman]

don't start polluting this thread with your fx mumbo-jumbo