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Currency Speculations
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June 17, 2008
Tue, Jun 17 2008, 12:15 GMT
by Mihai Nichisoiu
I disclosed late yesterday the numbers and premises of a heavy short yen exposure which I quite confidently started to build on May 30. But the way the sterling markets have just reacted to Mervyn King's open letter to Alistair Darling forced me into reconsidering the GBP/JPY part of that exposure.
Late yesterday, size of the GBP/JPY bets was accounting for about 80% of my overall yen exposure. However, a few moments ago I decided to liquidate in the profit zone the first two out of the total three GBP/JPY positions (taken at around 209.20 and 210.50 on May 30 and June 11 respectively). Only the third, most recently opened GBP/JPY position (also the heavier one, taken at around 211.90 on June 16) has survived today's portfolio adjustment.
At the same time I opened two brand new short yen positions, via going long the EUR/JPY and the CHF/JPY at around 167.60 and 103.70 respectively. So that right now the GBP/JPY accounts for only about 40% of my consolidated yen exposure.
What I've just done actively responds only to the perspective that sterling may further underperform the Swiss franc and particularly the Euro. It does not alleviate the risks of a still massive yen exposure affecting my trading accounts one way or the other, though.
Published on Tue, Jun 17 2008, 12:31 GMT
Archive
- September 15, 2008
Published On Mon, Sep 15 2008, 14:16 GMT - September 11, 2008
Published On Thu, Sep 11 2008, 09:18 GMT - September 8, 2008
Published On Mon, Sep 8 2008, 14:59 GMT - September 2, 2008
Published On Tue, Sep 2 2008, 11:46 GMT - August 28, 2008
Published On Thu, Aug 28 2008, 21:39 GMT
Mihai Nichisoiu
| Bucharest, Romania
http://www.mihainichisoiu.com | mihainichisoiu@gmail.com
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