Henry Liu
Former FPA Special Consultant
- Messages
- 473
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 currency for the rest of the month. Here is the forecast:
4:30am (NY Time) UK Manufacturing PMI Forecast 57.3 Previous 58.0
ACTION: GBP/USD BUY 59.5 SELL 54.5
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 59.5 or better, or looking to SELL GBP/USD if we get a 54.5 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
It seems that GBP is still looking for direction, despite of the moderate rally during the last couple of weeks against USD. With the pair's outlook at neutral, GBPUSD may find direction after today's release.
At any rate, I believe due to the low liquidity condition, if we get a strong deviation, market should move significantly.
Additional Thoughts
Officially we are going to be trading Retracement Trade, but if we get a deviation of 3.5 points, it justifies 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
Thanks,
4:30am (NY Time) UK Manufacturing PMI Forecast 57.3 Previous 58.0
ACTION: GBP/USD BUY 59.5 SELL 54.5
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 59.5 or better, or looking to SELL GBP/USD if we get a 54.5 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
It seems that GBP is still looking for direction, despite of the moderate rally during the last couple of weeks against USD. With the pair's outlook at neutral, GBPUSD may find direction after today's release.
At any rate, I believe due to the low liquidity condition, if we get a strong deviation, market should move significantly.
Additional Thoughts
Officially we are going to be trading Retracement Trade, but if we get a deviation of 3.5 points, it justifies 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
Thanks,
Last edited by a moderator: