Stavro D'Amore
Former FPA Special Consultant
- Messages
- 547
Manufacturing PMI (Purchasing Manager Index) is a leading indicator and it is usually released monthly, on the first business day after the month ends. Traders care about this release as it is a leading indicator of economic health and many businesses are quick to react to the market conditions.
4:30am (NY Time) UK Manufacturing PMI Forecast 51.5 Previous 51.3
ACTION: GBP/USD BUY 53.5 SELL 48.5
The Trade Plan
We are looking for a tradable deviation as this is a leading indicator. Its impact may provide a future insight of trends of other economic indicators such as inventory, employment, retail sales, etc.
The market usually reacts to this release with volatility if we get our deviation.
We will be looking to BUY GBP/USD if we get a 53.0 or better, or looking to SELL GBP/USD if we get a 48.5 or worse. We willl be using the Retracement Trading Method to trade this release. For more information, read after the news release:
Stavro D’Amore Trading Method
The Market
It seems that the GBP is currently well supported at 1.6340 due to a poor US dollar. A worse than expected release will increase inflationary pressure and will most likely place more uncertainty in the BOE's next move to be hiking any interest rate.
If we do get a strong release, we will be seeing a positive sign in the UK economy. This means that in addition to inflationary pressures that have been in the recent picture, we are also going to have a much better fundamental outlook, considering a poor US dollar and current Euro zone crisis.
Additional Thoughts
Officially, we are going to be trading this trade after the news release, but if we get a deviation that hits our numbers, we will go for a spike trade.
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
All The best
Stavro D’Amore
4:30am (NY Time) UK Manufacturing PMI Forecast 51.5 Previous 51.3
ACTION: GBP/USD BUY 53.5 SELL 48.5
The Trade Plan
We are looking for a tradable deviation as this is a leading indicator. Its impact may provide a future insight of trends of other economic indicators such as inventory, employment, retail sales, etc.
The market usually reacts to this release with volatility if we get our deviation.
We will be looking to BUY GBP/USD if we get a 53.0 or better, or looking to SELL GBP/USD if we get a 48.5 or worse. We willl be using the Retracement Trading Method to trade this release. For more information, read after the news release:
Stavro D’Amore Trading Method
The Market
It seems that the GBP is currently well supported at 1.6340 due to a poor US dollar. A worse than expected release will increase inflationary pressure and will most likely place more uncertainty in the BOE's next move to be hiking any interest rate.
If we do get a strong release, we will be seeing a positive sign in the UK economy. This means that in addition to inflationary pressures that have been in the recent picture, we are also going to have a much better fundamental outlook, considering a poor US dollar and current Euro zone crisis.
Additional Thoughts
Officially, we are going to be trading this trade after the news release, but if we get a deviation that hits our numbers, we will go for a spike trade.
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
All The best
Stavro D’Amore
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