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Forex Signal (Fri October 1 2010, 4:30am NY Time EDT) - UK Manufacturing PMI

Discussion in 'Current Forex Trading Signals' started by Henry Liu, Sep 30, 2010.

  1. Henry Liu

    Henry Liu Former FPA Special Consultant

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    Manufacturing PMI is a leading indicator and it’s usually released during early month. Traders pay attention to this release for surprises as this survey may help to shape the general trend of the market. Here is the forecast:

    4:30am (NY Time) UK Manufacturing PMI Forecast 54.0 Previous 54.3
    ACTION: GBP/USD BUY 56.0 SELL 52.0

    The Trade Plan

    We are looking for a tradable deviation (or the difference between the forecast figure and the actual release figure) of 2.0, and because this is a leading indicator and its impact may hint that the future trend of other economic indicators (such as inventory, employment, retail sales, etc..) , therefore market should react to this release with volatility if we get our deviation.

    We will be looking to BUY GBP/USD if we get a 56.0 or better, or looking to SELL GBP/USD if we get a 52.0 or worse, we’ll be using the Retracement Trading Method to trade this release. For more information, read:
    Henry's News Trading Method

    The Market
    GBP is currently under pressure from comments by BOE officials on the need for further stimulus before slipping back into recession. Projection for CPI has also been revised downward recently, which is also adding to the bearish sentiment in the Sterling.

    If we do get worse than expected release, market could move sharply lower. If we do get better release, GBP could be supported.

    Additional Thoughts
    We can expect GBP/USD to move 50 pips within the hour if our tradable figures are hit. With recent market uncertainties, we should stay out of the market if we get an inline with expectation release.

    Pre-news Considerations
    There should be no pre-news for this release.

    DEFINITION
    “UK Manufacturing PMI is a survey of purchasing managers in the manufacturing sector on various economic activities, including inventory, employment, orders, etc… A higher than 50 reading means expansion, or a less than 50 reading means contraction.”

    Historical Chart & Data For UK Manufacturing PMI

    Thanks,


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    #1 Henry Liu, Sep 30, 2010
    Lasted edited by : Sep 8, 2016

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