Hey folks,
Here is the video:
04-30-2009.swf
Yesterday's GDP figures came in quite low and created some decent short action on the EUR/JPY, but that pre-FOMC buying pressure I warned of eventually pulled things back higher. The FOMC decided not to cut rates further and did not announce any additional measures (saving ammunition as Bill Gross put it), but their rosier outlook and the fact that interest rates held higher than expected created a broad based USD rally. I had expected more of a carry trade move off of such a set of circumstances, so the divergence between EUR/USD and USD/JPY was quite surprising. Gold was a great sell yesterday anywhere at 900 or above and would continue to be a good sell today anywhere between 900 and 910. Stocks are holding their up-channel, but eventually (probably soon) it will break it's lower boundary, so I prefer to sell rallies and take some profits at the trendline support. Even selling now isn't such a bad idea as prices are so close to various resistance levels. For news Thursday:
0200 UK Nationwide House Price Index m/m (-1.2% expected)
If it comes out at -0.2% or higher, GBP/USD should rally by 30-40 pips
If it comes out at -2.2% or lower, GBP/USD should sell off by 40 pips.
0830 US Personal Income, Spending, and Core PCE m/m numbers - You've got to look at the overall picture created by these releases:
Income - Expected at -0.2%, a 0.5% deviation should be significant, and 1.0% away from expectations would be big news. Higher numbers should lead to buying pressure on EUR/USD, EUR/JPY, GBP/USD, etc. Lower numbers should cause selling pressure.
Spending - Expected at -0.1%, a 0.5% deviation should be significant, and 1.0% away from expectations would be big news. Higher numbers should lead to buying pressure on EUR/USD, EUR/JPY, GBP/USD, etc. Lower numbers should cause selling pressure.
Core PCE - Expected at 0.1%, a 0.2% deviation should be significant, and 0.4% away from expectations would be big news. High numbers should lead to SELLING pressure on EUR/USD and GBP/USD while lower numbers should cause BUYING pressure.
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
Here is the video:
04-30-2009.swf
Yesterday's GDP figures came in quite low and created some decent short action on the EUR/JPY, but that pre-FOMC buying pressure I warned of eventually pulled things back higher. The FOMC decided not to cut rates further and did not announce any additional measures (saving ammunition as Bill Gross put it), but their rosier outlook and the fact that interest rates held higher than expected created a broad based USD rally. I had expected more of a carry trade move off of such a set of circumstances, so the divergence between EUR/USD and USD/JPY was quite surprising. Gold was a great sell yesterday anywhere at 900 or above and would continue to be a good sell today anywhere between 900 and 910. Stocks are holding their up-channel, but eventually (probably soon) it will break it's lower boundary, so I prefer to sell rallies and take some profits at the trendline support. Even selling now isn't such a bad idea as prices are so close to various resistance levels. For news Thursday:
0200 UK Nationwide House Price Index m/m (-1.2% expected)
If it comes out at -0.2% or higher, GBP/USD should rally by 30-40 pips
If it comes out at -2.2% or lower, GBP/USD should sell off by 40 pips.
0830 US Personal Income, Spending, and Core PCE m/m numbers - You've got to look at the overall picture created by these releases:
Income - Expected at -0.2%, a 0.5% deviation should be significant, and 1.0% away from expectations would be big news. Higher numbers should lead to buying pressure on EUR/USD, EUR/JPY, GBP/USD, etc. Lower numbers should cause selling pressure.
Spending - Expected at -0.1%, a 0.5% deviation should be significant, and 1.0% away from expectations would be big news. Higher numbers should lead to buying pressure on EUR/USD, EUR/JPY, GBP/USD, etc. Lower numbers should cause selling pressure.
Core PCE - Expected at 0.1%, a 0.2% deviation should be significant, and 0.4% away from expectations would be big news. High numbers should lead to SELLING pressure on EUR/USD and GBP/USD while lower numbers should cause BUYING pressure.
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
