147 pips Profit from the BOE Quarterly Inflation Report

On Feb. 11, I mad 147 pips of profit by selling gbpusd ahead of the Bank of England (BOE) Quarterly Inflation Report and may be more importantly the ILO Unemployment report. It was after nearly 5 percent drop in the U.S. equity indexes on rising skepticism about the Treasury's plan for fixing the financial system.

Jobless Claims rose by 73,800 in January, a little better than the estimates, and the unemployment rate climbed to 6.3 percent. Mervyn King, the BOE Governor, painted a very gloomy picture about the state of the U.K. economy in the coming months, saying that the MPC may start buying assets to print money even before the next meeting in March. However, the charts below might show that the news was mostly priced.

BOE Quarterly Inflation Report: Making 10 percent Profit

The bet on falling sterling resulted in profit. I closed the positions, short on gbpjpy and gbpusd, near the support and before the actual report itself.

BOE Quarterly Inflation Report: Four Hours Left

The BOE is to release its quarterly report on the future of growth and inflation in less than four hours. Yen is weaker now. China's retail sales grew close to its fastest pace from a year earlier, a report today showed. If selling gbpjpy is an option there is more risk now.