Forex Trading Signal 03/06/09

Hi there

Here is the video:
03-06-2009.swf

The two interest rate decisions did not have any major surprises on the numbers themselves, so there was no trade there. Trichet's speech had some negative developments due to their drastically downgraded inflation and growth forecasts, but late in the speech Trichet implied that they were going to cut rates further in the next meeting or two, so that helped the Euro eventually find some support and rally back higher.

For tomorrow, there's just one trade worth our attention:

0830 US Nonfarm Payrolls (-650K expected) - There is very often a lot of weakness in stocks and carry trades in the days leading up to a potentially bad NFP like this one, then when the numbers actually come live, there's a lot of short covering that creates upside even though the numbers aren't great. We seem to be setting up for similar action this time around as well.
If it comes out at -750K or lower, USD/JPY should sell off 40-50 pips quickly and be good for a quick short.
If it comes out at -523K or higher, USD/JPY and/or EUR/JPY should be a great buy and could see 60-100 pips or more higher as long as there isn't a big downwards revision to last month's numbers.
Riskier potential opportunity - If it comes out somewhat close to expectations, even if a bit lower than the consensus, chances are we will see a relief rally as people cover their shorts, so consider buying USD/JPY or EUR/JPY even if there isn't a big upwards surprise.

TRADE LIVE WITH SIR PIPS FOR $39.00 FOR 2 WEEKS
Sir Pipsalot has a live trading room, in which he trades these news reports. There, he shares his trades in real time, including exact entries and exits, and detailed explanation for every entry and exit. The service costs $299 per month, but we have a 14-days $39.00 trial. Go to Forex Diamonds and take advantage of this offer. This offer is for NEW customers only.

To our success,
Sir Pipsalot

 

Thanks SP. Stopped out of my eu short from a couple of weeks ago at BE at 1.2688, still in at Oanda with sl at BE at 1.2760 - Oanda's daily charts start in the middle of the asian session, and so give me different triggers than a normal daily chart - still wondering what to do about that. The euro mystery continues: I'm planning to either go short at a daily reversal in the 2900 region off the two upper channel lines, or long at a higher low - only trading daily charts for the moment, which leaves my days free ! I watch your videos religiously - thanks again.

 

Hi Mark

What makes trading hair-raising, this side of the Atlantic,
if you're a devotee of Cable or EUR/GBP, is the tendency for the
Brit politicians (particularly Brown and Darling) to appear in front
of the media with ad hoc policy changes and comments at all
hours of the day and night, with scant regard for where a chap might
have placed his stops ...

:unhappy:

-
Chris