Stopped out of short GBP/AUD on the UK inflation number. As I said in the trade sheet, it would have been better to play this using EUR/AUD — the stop would have been wider because the market didn’t come back to test the breakout level, but I am more bearish about the EUR than the GBP and I should have seen the risk from the UK inflation numbers.

Doesn’t everybody know how important base effects are in the UK inflation numbers? Doesn’t everybody know about tax increases and so on? I need to remember that the market represents nothing more or less than the collective wisdom of a million terrified monkeys.

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