Yes folks, your data risk event of the day on its way 14 Feb
US CPI and Retail Sales at 13.30 GMT and markets are standing poised in a hyped-up frenzy of anticipation!
We will, as always, expect an initial algo headline-led reaction to the data if wide of the mark so be ready with your entry/exit levels from whichever side you want to play.
Placing limit orders in advance can often be useful given the occasional speed of moves and subsequent reversals, although equally it can be prudent to wait and manually trigger executions once you've sized up the data in its entirety and gauged the price action.
Through all the huff n puff and algo-led reaction though also keep in mind that we have some large option expiry interest in play too.
Further to my daily update and other posts just another heads-up that we have a lot of congestion on EURUSD today between 1.2275 and 1.2400 and that should help to contain range. It may though help tip the scales in other EUR pairs if EURUSD remains relatively anchored.
Also interest nearby in EURGBP and AUDUSD to keep an eye on.
Remember these are vanilla options and in play right up until expiry even if breached in the meantime unlike barrier options which cease to be once broken.
Barrier options currently alive:
EURUSD: 1.2600
USDJPY: 106.50
For more info on how to use this all data, please refer to my post here.
Long live cryptocurrencies? Five insights from the ASAC Fund
