Hey Folks,
Here is the video:
03-18-2009.swf
Yesterday's German ZEW came in only a bit better than expected, but still managed a decent rally on EUR/USD. It didn't hit our triggers, but it's nice to see some more healthy, typical news-type price action from a smaller deviation. US PPI came in just slightly higher and not tradable, but the wild card, US Housing Starts came in much better than expected and led towards a modest rally on EUR/JPY. The big focus tomorrow will be the FOMC Interest Rate Statement, but there is some other data out:
0530 BoE Minutes (Unanimous vote count expected) & Claimant Count Change (84.5K expected) - The BoE Minutes will likely dominate the price action with traders potentially picking apart their language to look for reassurance or signs of further calamity. Claimant Count Change will help provide some upwards pressure if it comes in 10K+ lower than expected or downwards pressure to GBP/USD if it comes in 15K+ higher than expected.
0830 US CPI Ex Food & Energy m/m (0.1% expected) - This is a tough one to really put our finger on because of the shifting focus between deflation and inflation from the markes, but deflation still tends to be the predominant view, so we'll trade it from that angle.
If it comes out at 0.2%, EUR/JPY should rally by 30-40 pips.
If it comes out at -0.1% or lower, EUR/JPY should sell off by 30-40 pips or more.
If it comes out at +0.3% or higher, EUR/JPY may see some rough volatility, so I would stay out.
1415 US FOMC Interest Rate Statement - Traders will likely focus on whether or not they expanded their rate of asset backed securities purchases. On top of that, any new forecasts, ideas or dissention thrown into the mix will lead to some sharp risk aversion or risk appetite.
If they are not expanding their purchasing program and things don't seem very reassuring, look to short EUR/USD but I recommend waiting for some confirmation like a 5 minute red candle and taking it as a swing trade.
If they are reassuring and/or highlight plans to aggressively expand their purchasing program, look for something similar but opposite on a EUR/USD long.
TRADE LIVE WITH SIR PIPS FOR $39.00 FOR 2 WEEKS
Sir Pipsalot has a live trading room, in which he trades these news reports. There, he shares his trades in real time, including exact entries and exits, and detailed explanation for every entry and exit. The service costs $299 per month, but we have a 14-days $39.00 trial. Go to Forex Diamonds and take advantage of this offer. This offer is for NEW customers only.
To our success,
Sir Pipsalot
Here is the video:
03-18-2009.swf
Yesterday's German ZEW came in only a bit better than expected, but still managed a decent rally on EUR/USD. It didn't hit our triggers, but it's nice to see some more healthy, typical news-type price action from a smaller deviation. US PPI came in just slightly higher and not tradable, but the wild card, US Housing Starts came in much better than expected and led towards a modest rally on EUR/JPY. The big focus tomorrow will be the FOMC Interest Rate Statement, but there is some other data out:
0530 BoE Minutes (Unanimous vote count expected) & Claimant Count Change (84.5K expected) - The BoE Minutes will likely dominate the price action with traders potentially picking apart their language to look for reassurance or signs of further calamity. Claimant Count Change will help provide some upwards pressure if it comes in 10K+ lower than expected or downwards pressure to GBP/USD if it comes in 15K+ higher than expected.
0830 US CPI Ex Food & Energy m/m (0.1% expected) - This is a tough one to really put our finger on because of the shifting focus between deflation and inflation from the markes, but deflation still tends to be the predominant view, so we'll trade it from that angle.
If it comes out at 0.2%, EUR/JPY should rally by 30-40 pips.
If it comes out at -0.1% or lower, EUR/JPY should sell off by 30-40 pips or more.
If it comes out at +0.3% or higher, EUR/JPY may see some rough volatility, so I would stay out.
1415 US FOMC Interest Rate Statement - Traders will likely focus on whether or not they expanded their rate of asset backed securities purchases. On top of that, any new forecasts, ideas or dissention thrown into the mix will lead to some sharp risk aversion or risk appetite.
If they are not expanding their purchasing program and things don't seem very reassuring, look to short EUR/USD but I recommend waiting for some confirmation like a 5 minute red candle and taking it as a swing trade.
If they are reassuring and/or highlight plans to aggressively expand their purchasing program, look for something similar but opposite on a EUR/USD long.
TRADE LIVE WITH SIR PIPS FOR $39.00 FOR 2 WEEKS
Sir Pipsalot has a live trading room, in which he trades these news reports. There, he shares his trades in real time, including exact entries and exits, and detailed explanation for every entry and exit. The service costs $299 per month, but we have a 14-days $39.00 trial. Go to Forex Diamonds and take advantage of this offer. This offer is for NEW customers only.
To our success,
Sir Pipsalot
