Cable Update (GBPUSD)

USD little moved by the release of a tame CPI. The data should provide some comfort to Federal Reserve officials worried about the potential inflationary impact of oil and commodity prices as well as the weak dollar.

Treasurys have edged higher, adding to their overnight gains, after a tame core CPI reading and an increase in weekly jobless claims. The yield curve continues to steepen with gains at the front-end much more pronounced. The 10-year note is up 9/32 for 4.23%, with the yield down 4 bps on the session. The 2-yr note is up 6/32 for 3.44%, with the yield down 10 bps. Curve at 79 BP vs 74 BP Wed.

i guess going to fall soon.. maybe another 100 pips..

that means short on GU aight?

ofcourse short..

i was struggling before news came up cuz GU was still rising. i have 3 trade shorts. hope they'll drop more

go bear go.. !

right gbp will going down

perhaps 2.0241

oh crap!! left the desk for few minutes and it hit the trailing stop.. what the hell is happening now?

Price is dancing, that's all.

The latest rise in weekly jobless claims data are a troubling sign, says Tony Crescenzi, bond market strategist at Miller Tabak & Co. "The trend in jobless claims has begun to show worrisome traits indicative of a weakening in labor market conditions that if continued would be indicative of economic recession. To be sure, jobless claims are not now in recession territory, but they should not be expected to reach recession territory suddenly; more likely, the move to recession territory will occur over many months, although one would have to be wearing blinders to miss the trend."

GBP/USD: 2.0500 Option Expiry Today London, November 15. We have been told that a 2.0500 option strike rolls off at today"s looming 10am Eastern NY cut (15:00GMT). Sell stops below 2.0500 were tripped during the European morning, following the disclosure of disappointing UK retail sales figures. 2.0505 was today"s Asian session base

...crazy zig zag up down up down goin on....good for scalpers!

FX OPTIONS: Daily Overview: Vol Gains Abound 15:27 FX OPTIONS: Daily Overview: Vol Gains Abound London, November 15. Another day of robust activity, with vol gains to note across the board in London. Spot Cable back under pressure after the weak UK retail dales data, which added to the rate cut expectations initiated after yesterday"s BoE inflation report. The pair extended yesterday"s 2.0505 base to 2.0422 for losses of over 4 cents in the last 2 days. Overnight vol active at 17.0 in early London and 1wk atmf was paid 11.5-12.25. 1m atmf paid 9.8 through 10.5- with good size trading at the highs. 3m atmf very active at 9.6, after gains from 9.3. 1m 25d r/rev paid 1.25 and 1yr 1.0 GBP calls. Spot EUR/GBP through 0.7150 barriers to 0.7166. 1m atmf paid 7.85 and 6m 6.7-7.0. Front end risk reversals above 1.0 EUR calls. Spot EUR/USD fell from high 1.47"s to a 1.4606 base and lifted vols in its wake. Lofty levels seen right in to the close. Overnight atmf paid 12.5-14.0 and 1wk on to a 10.0 handle. 1m atmf paid 8.5 through 8.85 and 1yr from 7.4-7.55. Entire risk reversal curve traded 0.4 first thing and some dates trading a touch higher (EUR puts). 1yr 25d fly matching recent highs at 0.425. Spot USD/JPY still weighed on familiar sub prime woes and weak stocks - the pair through Asia"s 111.05 base to 110.39 in early Europe. Vols higher on the initial spot weakness and actually extended gains in early US hours on general short covering. Risk reversals also trading back out to the right as players picked up cover at slightly softer levels (compared to those seen earlier this week). 1m atmf paid 12.5 through 13.25 and 1yr 9.3-9.5. 1m r/rev lifted 4.55 and 6m @ 5.0 JPY calls. Front end EUR/CHF vols back out to the right today - 1m atmf paid 4.75-5.0.

what shall we do lol.. i feel bored when theres no movement. im addicted to forex >.>

stay out, boring but at least u can't lose :-D

i think its getting ready to go somewhere!

im with peterM on that 1

Lo....NG GU Longggggggggg.................

finally some movement. im short by small lot. sl at BE hope it is going bearish from this point. chheeerzz

nooooooooo short short short!