Forex Trading Signal 10/30/08

Crazy Cat

Former FPA Special Consultant
Messages
753
Hi there my friend :)

Hi-Quality Preview/Review:
1) 10-30-2008.swf

Let's first review what happened on Wednesday.

U.S. Durable Goods came out too close to expectations so it was a no trade. There was also conflict between headline and core number.

Norway and U.S. Interest rate statements came out as expected so no trades there either. Please watch the video for chart analysis.

Let's talk about Thursday.

1. Thursday, October 30th, 2008 (8:30 a.m. New York Time) USA
At 8:30 a.m. we will have U.S. GDP Annualized q/q. It is expected to come out at -0.5%. This is very lagging indicator but if it comes out at -1.0% or lower (more negative), I would sell USD/JPY and expect 40 pips move. If it comes out at 0.0% or positive, I would buy USD/JPY and expect 40 pips move as well. Do not hold your position because chances are good it will reverse.

That would be all for Thursday.

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Good luck trading guys!

To Our Success!
-Crazy Cat
 

MidasFX

Private
Messages
11
Yesterday SirPips talked about trading the EUR/JPY pair for the US interest rate decision. Can anyone explain (or point me in the right direction if there is a more relevant section to post this question) why that particular pair is chosen over a USD cross.

Thank you.
 

Josh

Recruit
Messages
8
A higher than expected interest rate is normally BULLISH for the the USD. This means SELL EURUSD. However Japanese economy and US economy are tired together so what tends to be very bullish for the USD will also be slightly bullish for the JPY also (Hence slightly bullish for USDJPY but sometimes undergo immediate correction, yesterday was a perfect example of that). Because of the difference in value of currency unit between the EUR and JPY, the EURJPY pair will have greater variation in points that the pair moves (hence easier to trade, GBPJPY would have a greater variation still, but most brokers charge more for that currency pair). However EURUSD still very tradable.
 
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