Stavro D'Amore
Former FPA Special Consultant
- Messages
- 547
UK Services PMI
Forecast 53.3
Previous 53.9
Pair to trade: GBP/USD
Triggers we need: BUY 55.8 SELL 50.8
Economical Impact: High
Typical Result: Actual forecast is good for the currency
Occurrence: This data is released monthly, on the third business day after months end.
About our Triggers:
The Services PMI is tradable with a minimum deviation of 2.5 witch is the difference between the forecast and the actual release. Our triggers are conservative. If we get at least 56.0 or a higher number we will see some strong demand in the GBP and see the short burst of USD drop off again. I will consider trading the following pair GBP/USD. Should we have a 50.8 number or lower we could see further drops on GBP/USD as it has been sold overnight.
Why do we care:
It's a leading indicator of economic health and businesses both global and local businesses will react quickly to market conditions. Higher deviation means industry expansion, lower deviations indicates contraction.
Method to trade this: Stavro D’Amore Trading Method
I'd recommend spike trading as the best option when there is great uncertainty in the markets; also the liquidity is very good at the moment if you’re using an ECN broker.
Should you not get a spike trade, I will look for a 30% retracement in the original spike before entering a trade; I will sell half my position as soon as I hit the original high point of the first initial spike, and place a SL at entry price. My TP level would be Just before a resistance level or if the chart decides to form a level looking at a 15 min time frame.
Historical Chart and Data for UK Services PMI
What is UK services PMI:
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.”
All the best
Stavro D’Amore
Forecast 53.3
Previous 53.9
Pair to trade: GBP/USD
Triggers we need: BUY 55.8 SELL 50.8
Economical Impact: High
Typical Result: Actual forecast is good for the currency
Occurrence: This data is released monthly, on the third business day after months end.
About our Triggers:
The Services PMI is tradable with a minimum deviation of 2.5 witch is the difference between the forecast and the actual release. Our triggers are conservative. If we get at least 56.0 or a higher number we will see some strong demand in the GBP and see the short burst of USD drop off again. I will consider trading the following pair GBP/USD. Should we have a 50.8 number or lower we could see further drops on GBP/USD as it has been sold overnight.
Why do we care:
It's a leading indicator of economic health and businesses both global and local businesses will react quickly to market conditions. Higher deviation means industry expansion, lower deviations indicates contraction.
Method to trade this: Stavro D’Amore Trading Method
I'd recommend spike trading as the best option when there is great uncertainty in the markets; also the liquidity is very good at the moment if you’re using an ECN broker.
Should you not get a spike trade, I will look for a 30% retracement in the original spike before entering a trade; I will sell half my position as soon as I hit the original high point of the first initial spike, and place a SL at entry price. My TP level would be Just before a resistance level or if the chart decides to form a level looking at a 15 min time frame.
Historical Chart and Data for UK Services PMI
What is UK services PMI:
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.”
All the best
Stavro D’Amore
Last edited by a moderator: