Monday Aug 29th FX gaps

Morning folks

I am now watching 10 FX pairs, after adding the GBPJPY to my watchlist last week. This week on opening all pairs have opened with a gap, although the AUDUSD was only open for 1 pip. Of the 10 pairs, 4 have closed so far - all 4 were effectively untradeable due to the size of their spreads whilst open.

The best gaps are the EURUSD and the 4 JPY pairs, presumably as a follow-on from the large move on the Yen Friday night.

I have taken trades to close the EURUSD and USDJPY which is the best of the 4 JPY pairs owing to both gap size and smallest spread. I may add more trades on the other pairs if they open further/enough.

In terms of spreads I'm starting to see a pattern which suggests its generally not worth any trades before 6.30am. From 6.30-7.00am there is usually 1 or 2 opportunities but generally the spreads are quite large (ridiculous really) and its worth waiting until after 7.00am when the spreads close to levels which make most gaps still open worth trading.

Watchlist table as it currently stands is shown below:



Status on gaps open prior to this week:

1. The GBPJPY from last Monday remains open and opened out further on Friday night (much to my dissatisfaction when I woke Saturday morning)

2. The 3 GBP pairs from the June 27th Brexit weekend also remain open, although they each closed somewhat last week as the GBP seemed to gain some strength.

Further update later as more gaps close.

Cheers, Sharks.