1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Forex Signal (Mon November 1 2010, 5:30am NY Time EDT) - UK Manufacturing PMI

Discussion in 'Current Forex Trading Signals' started by Henry Liu, Nov 1, 2010.

  1. Henry Liu

    Henry Liu Former FPA Special Consultant

    Joined:
    Jul 5, 2010
    Messages:
    473
    Likes Received:
    0
    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:

    5:30am (NY Time) UK Manufacturing PMI Forecast 53.2 Previous 53.4
    ACTION: GBP/USD BUY 55.5 SELL 51.0

    The Trade Plan

    We are looking for a tradable deviation (or the difference between the forecast figure and the actual release figure) of around 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 55.5 or better, or looking to SELL GBP/USD if we get a 51.0 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 looking pretty well supported after the Prelim GDP q/q release last week. As a matter of fact, there is now very little expectation for any kind of easing policy from BOE, given the stellar figure of 3rd quarter GDP doubling market expectation.

    I'd expect further strength in the GBP if we get a strong release. On a weak release, as long as it maintains above 50, I think market will still be very supportive for the Sterling.

    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,


    [​IMG]
     
    #1 Henry Liu, Nov 1, 2010
    Lasted edited by : Sep 8, 2016
  2. Adam Wyn-Roberts

    Joined:
    Oct 31, 2010
    Messages:
    21
    Likes Received:
    0
    Thank You!

    Thank you very much Henry Liu,

    You just made me $90
    :)

    Have a good one today

    Regards

    Adam Wyn-Roberts
     
  3. swingfiddle

    swingfiddle Private

    Joined:
    Aug 17, 2010
    Messages:
    42
    Likes Received:
    0

    did you trade the spike?
     
  4. swingfiddle

    swingfiddle Private

    Joined:
    Aug 17, 2010
    Messages:
    42
    Likes Received:
    0
    good one:)+12 pips real money:)
     
  5. DumbAsArock

    DumbAsArock Private, 1st Class

    Joined:
    Aug 14, 2010
    Messages:
    32
    Likes Received:
    0
    1) The BUY trigger was 55.5. The actual number was 54.9. Therefore, there was no trade per Henry's suggestions.

    2) There was no spike, more like a thumbtack.

    3) Henry suggested a retracement trade, not a spike.

    4) There was no trade using Felix's method either.

    Ergo, he got lucky. That's all.
     
  6. nomoregoldscams

    nomoregoldscams Recruit

    Joined:
    Aug 4, 2010
    Messages:
    3
    Likes Received:
    0
    UK Manufacturing PMI

    Thanks.... for that useful information..

    I feel very good at this time.
     

Share This Page