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Forex Signal (Wednesday August 3, 2011 - 4:30am NY Time EDT) - UK Services PMI

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Aug 2, 2011.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

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    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
     
    #1 Stavro D'Amore, Aug 2, 2011
    Lasted edited by : Sep 8, 2016
  2. digamer

    digamer Private, 1st Class

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    incorrect time

    This release (as well as Manufacturing PMI) also comes at 4:28am NY, not 4:30. All the newsspike-action might be long gone at 4.30. Stavro, could you please correct these in the future posts?
     
  3. Anthonia Taiwo

    Anthonia Taiwo Private

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    Thanks for the news. Please can you explain what you mean by the term spike trade and how does it affect the news.

    Thanks
     
  4. SpinG1

    SpinG1 Recruit

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    Spike

    Spike is an significant move in the price of the respective currency pairs. It also occurs during news release. Take position after the retracement in the initial spike with defined TP & SL
     
    #4 SpinG1, Aug 3, 2011
    Last edited: Aug 3, 2011
  5. musketeer

    musketeer Private

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    yep, Data is given to Thomson Reuters subscribers 2 minutes before the public release time listed on the calendar...
     
  6. Anthonia Taiwo

    Anthonia Taiwo Private

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    Are you really serious. This is the reason I lose up to 20 pips after the release.Because on forex factory news is released 4:30 NY time

    Please are do I subscribe to get this news early on thomson reuters.

    Thanks.
     
  7. Anthonia Taiwo

    Anthonia Taiwo Private

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    You were right. I missed the spike before i received news it had already gone 60 pips up and am in it it's is now selling against me.

    How do I get this news release early.

    Thanks.
     
  8. Boko Maru

    Boko Maru Sergeant

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    This report is ALWAYS released at 428am EST; it's not "early" and you don't need to be a Thompson's subscriber; it's released at that time every month.

    For the number, you can try Ransquawk http://ransquawk.com/live, which gives free 2 min delayed audio, but text is almost live even with the free version, or subscribe for live audio either there or other services. You can't get it truly live anywhere for free though...
     
  9. yurps

    yurps Private

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    snw

    yep it is always at 28 minutes after the hour
    9:28 am in London
    4:28 am in EST

    the Autoclick software always gets this number at 28 minutes past.

    Great Spike trade, but hell I shorted the afterspike which retraced
    all the way to 78% of the initial spike, but when New york came in
    and bought the US Dollar accross the board, it moved down 200
    pips.

    So great spike but actually the afterspike I took 15 minutes after the
    release was the real big winner...
     
    #9 yurps, Aug 3, 2011
    Last edited: Aug 3, 2011
  10. Anthonia Taiwo

    Anthonia Taiwo Private

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    Thanks for the info. I will appreciate text but anyway I'll give it a try.
     

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