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Forex Signal (Wed November 3, 2010 5:30am EDT NY Time) UK Services PMI m/m

Discussion in 'Current Forex Trading Signals' started by Henry Liu, Nov 2, 2010.

  1. Henry Liu

    Henry Liu Former FPA Special Consultant

    Jul 5, 2010
    Likes Received:
    We’ll be trading the UK Services Purchasing Manager Index today at 5:30am (NY Time). This is a leading indicator similar to the Manufacturing PMI that was released at the end of last week, here’s the forecast:

    5:30am (NY Time) UK Services PMI Forecast 52.5 Previous 52.8
    ACTION: GBP/USD BUY 55.0 SELL 49.9

    The Services PMI is tradable with a minimum deviation of 2.5 between the forecast and the actual release. If we get at least 55.0 or better, we could see some demand in the GBP and we will consider BUYING GBP/USD or GBP/JPY pairs. If we get a 49.9 (anything below the medioum 50 level), GBP could weaken and we should look to SELL GBP/USD or GBP/JPY pairs.

    I'll be trading this release using after news retracement trading method. For more information on my methods:
    Henry's news trading methods.

    The Market
    With BOE rendering its interest rate decision on Thursday and based on current market sentiment, BOE's monetary policy is well balanced. There is no expectation leaning towards either to tightening or easing in the near future.

    GBP is likely to remain range-bound until after the FOMC Meeting Decision today, unless we get a strong surprise, it is best to stay out of the market.

    Additional Thoughts
    UK’s economy is 73% Services related, if we get a strong release on this PMI, we could see GBP sentiment turn bullish.

    GBP/USD is on the verge of a breakout after the 3rd quarterly GDP doubling expectation, a stronger than expected PMI reading would keep Sterling well bid.

    Pre-News Consideration
    There is no pre-news consideration for this release, and even if there is a possible trend developing, I'd warn against it since this week is packed with economic news releases...

    “The Chartered Institute of Purchasing and Supply (CIPS) Services Purchasing Manager’s Index (PMI) measures the activity level of purchasing managers in the services sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation’s currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.”

    Historical data and charts for UK Services PMI


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

    Oct 31, 2010
    Likes Received:
    Nice one -- didn't expect this one to rise this much, still going up!
    I chickened out at .90

    Still have to learn to wait longer - seeing the historical data ...
    Well, still made a buck, though, thank you very much


  3. simhaforex

    simhaforex Private

    Aug 14, 2010
    Likes Received:
    how to know forex calender immediately???

    how to know forex calender immediately???

    i am getting results few seconds late after the news announced ....
    so i am not able to trade news properrly after the results are announced.

    how to know news immediately?

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