1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Forex Signal (Wednesday January 25, 2012 NY TIME 4:30am EDT NY TIME) – UK MPC Meeting Minutes

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Jan 24, 2012.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

    Jul 29, 2011
    Likes Received:

    Please see my trade plan, I know the main focus will be on GDP which is to come out the same time, but if this deviation of votes changes it will over rule the GDP Q/Q. Please stay diligent

    UK MPC Meeting Minutes
    Forecast: 0-0-9
    Previous: 0-0-9
    Pair to trade: GBP/USD

    The numbers we will look for:
    BUY GBP/USD if we get 2 Votes for hike
    SELL GBP/USD if we get 2 Votes for quantities easing

    Economic Impact: High (will bring strong volatility to GBP pairs)
    Typical Result: More hawkish than expected is good for currency
    Occurrence: Released monthly, 13 days after the Official Bank Rate is announced

    About our Triggers:
    The breakdown of the MPC member’s interest rate votes tends to be the most important part of the minutes. The vote is reported as X-X-X format, we are currently on 0-0-9 forecast and previous was also 0-0-9.
    The first number is how many voted to increase rates.
    The second number is how many voted for a rate reduction
    The third number is how many voted to hold rates.
    If we get 2 votes for an increase (which is very unlikely) we will immediately BUY GBP/USD. If we get 2 votes for quantities easing we will sell GBP/USD. Should the vote remain the same, I will not enter this trade on any retracement due to uncertainty and other comments that could have been circulated during the MPC meeting.

    What is it? Why does the market care?
    The Bank of England (BOE) Monetary Policy Committee (MPC) Meeting Minutes are a detailed record of the committee's interest rate meeting held about two weeks earlier.
    It gives a picture of economic conditions in the UK.
    It also records the votes of the individual members of the Committee
    If the BoE is hawkish about the inflationary outlook; it should be taken as positive/bullish for the GBP.

    Method I use to trade this:
    Stavro D’Amore Trading Method

    Felix Descriptions:
    Indicator Descriptions

    Approximately 5 minutes prior to the news release I will be looking for a short term SHORT position using GBP/USD pair. I would be out of this LONG trade 1 minute before the actual release, or to avoid any spreads that should widen.

    I do NOT recommend spike trading as an option for this release.

    Historical Chart and MPC Meeting Minutes

    All the best

    Stavro D’Amore
    #1 Stavro D'Amore, Jan 24, 2012
    Lasted edited by : Sep 8, 2016

Share This Page