There were 2 no-brainer trades this morning:
- The GBP was way oversold after the UK downgrade and cable traded at 1.5075, allowing for a cheap trade with a stop below protected barriers at 1.5050.
- The JPY was similarly ridiculously oversold after news that a well-known Dove was likely to be come the next BOJ Governor. The market knew this already, Abe was hardly likely to look for someone with hawkish credentials?
These types of opportunities aren’t very frequent and you really only get one quick bite at the cherry, but for those who wait patiently for the 6 or 8 no-brainer trades a month, life is much easier than for those who try to be right all the time.