NEWS TRADING
Tuesday, July 13 2010
[4:30am NY Time - 10:30am GMT + 1:00]
We'll be trading the UK Consumer Price Index (CPI) release at 4:30am
NY Time today. We'll be looking at the yearly release figure and
the market could react with lots of volatitility as CPI is the basic
measurement of Inflation, therefore expect to see more exaggerated
moves if we get a huge surprise in the release. Here is the
forecast for this release:
UK CPI y/y Forecast 3.2% Previous 3.4%
ACTION: GBP/USD BUY 3.6% SELL 2.9%
We are looking for a safe deviation of 0.3% for SELL and 0.4% for
BUY. If the Inflation number increases to of 3.6%, which is way
above BOE's inflation target, we will BUY of GBP/USD. If the
Inflation number decreases to 2.9% or less, we'll look to SELL
GBP/USD. Historically, even with a slight difference of 0.1%, market
usually overreacts. If our deviation is hit, there is a strong
possibility that the market will move 50 pips immediately.
I'll be looking more to SELL GBP than to BUY GBP due to the current
market sentiment; therefore, I recommend only BUY GBP if we get a
huge surprise on the CPI to the upside.
Tuesday, July 13 2010
[4:30am NY Time - 10:30am GMT + 1:00]
We'll be trading the UK Consumer Price Index (CPI) release at 4:30am
NY Time today. We'll be looking at the yearly release figure and
the market could react with lots of volatitility as CPI is the basic
measurement of Inflation, therefore expect to see more exaggerated
moves if we get a huge surprise in the release. Here is the
forecast for this release:
UK CPI y/y Forecast 3.2% Previous 3.4%
ACTION: GBP/USD BUY 3.6% SELL 2.9%
We are looking for a safe deviation of 0.3% for SELL and 0.4% for
BUY. If the Inflation number increases to of 3.6%, which is way
above BOE's inflation target, we will BUY of GBP/USD. If the
Inflation number decreases to 2.9% or less, we'll look to SELL
GBP/USD. Historically, even with a slight difference of 0.1%, market
usually overreacts. If our deviation is hit, there is a strong
possibility that the market will move 50 pips immediately.
I'll be looking more to SELL GBP than to BUY GBP due to the current
market sentiment; therefore, I recommend only BUY GBP if we get a
huge surprise on the CPI to the upside.