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Forex Signal (Wed December 1 2010, 4:30am NY Time EST) - UK Manufacturing PMI

Discussion in 'Current Forex Trading Signals' started by Henry Liu, Nov 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 55.0 Previous 54.9
    ACTION: GBP/USD BUY 57.0 SELL 53.0

    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 57.0 or better, or looking to SELL GBP/USD if we get a 53.0 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
    GBPUSD has reached psychological support area at the 1.5500 and bounced off from these levels. Looking ahead at current market sentiment, GBP may remain weak if more bailout or debt concerns were to arise with Spain or Portugal.

    However, the view for the Sterling based on its own fundamental is actually quite promising, at least much better than other European nations. If we do get a strong number, I would expect to see GBP back in demand.

    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 30, 2010
    Lasted edited by : Sep 8, 2016
  2. Ahmed H

    Ahmed H Private

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    Thanks henry.. made 30 PiPs.. :)
     
  3. Oinq

    Oinq Recruit

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    Got 25 pips, tnx
     
  4. Fede90

    Fede90 Private

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    When did you enter mate?
     

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