Felix Homogratus
Commander in Chief
- Messages
- 153
This is Felix writing. I am the founder of Forexpeacearmy.com and the originator of the FPA free trading signals. For a while Sir Pipsalot was replacing me, but I feel it’s time that I take the signals back into my hands
Sir Pipsalot will continue posting his trading signals as well. You will be able to read them here: Sir Pipsalot's Daily Trading Signals
As always, the first week of the month is usually very busy. This week we have interest rate statements coming out of 4 major countries. We have employment reports coming out of 3 major countries. We have retail sales, and a few other things.
If you don’t know where to get live numbers for the economic reports mentioned above, you should consult with your forex broker. Most of them have news feeds built into their platform, so you can open it, and watch these numbers released live. The broker that definitely has the news feed is OANDA, The Currency Site: Foreign Exchange Services and Trading. If your broker doesn’t provide the numbers, you can always open a demo account with Oanda, and get access to their news feed this way.
1. Monday, November 2nd (4:30 am New York Time) UK
We are starting the day with Manufacturing PMI coming out of England. Last month, it came out at 49.5, and this month it’s expected to come out at 50.0. Click here to read what Manufacturing PMI means.
If manufacturing PMI reads 49.5 or below, it will be bad for the British pound, so we will probably see GBP/USD drop by around 40 pips or more. If it reads 50.5 or above, it will be good for the British pound, so we will probably see GBP/USD go up by around 40 pips or more.
For example, last month, on October 1st, economists expected this indicator to read 50.2, but the reading came out at 49.5. We saw GBP/USD drop 40 pips in the first minute, because it came out lower than expected. You can see the chart of what happened by clicking here.
It might happen that the currency will start dropping so quickly that you won’t be able to get in. In this case, you can try to get in on the retracement, and still make money. Click here to read after-spike strategy for this report.
2. Monday, November 2nd (10:00 am New York Time) USA
At 10:00 am New York Time, we have ISM Manufacturing index coming out of the US. Last month, it came out at 52.6, and this month it’s coming out at 53.0. Click here to read what ISM Manufacturing means. At the same time, we have US pending home sales coming out of the US as well. Last month, it came out at 6.4, and this month it’s expected to come out at 0.4. Click here to read what Pending Home Sales report means.
Both of these reports are important, so if there is a conflict, meaning that one comes out higher, and the other lower, I suggest staying out of the market, because the move is hard to predict. But if both reports come out better than expected, by at least 3 points combined, it will be good for US dollar, and we will probably see USD/JPY going up by around 30 pips or more. If they both come out worse than expected, by at least 2 points combined, it will be bad for US dollar, and we will probably see USD/JPY going down by around 30 pips or more.
For example, on September 1st, ISM Manufacturing came out at 52.9 versus 50.5, and pending home sales came out at 3.2 versus 1.6. So ISM came out by 2.4 points better than expected, and Home Sales came out by 1.6 points better than expected, thus 2.4+1.6=4.0 points combined. Within the first few minutes, USD/JPY went up by around 35 pips. You can see the chart of what happened by clicking here.
In case the currency drops so quickly that you are not able to get in and make money, you can read the after-spike strategy for this report by clicking here.
3. Monday, November 2nd (22:30 New York Time)
Then at 22:30 New York Time, we have interest rate statement coming out of Australia. Last month Australian government unexpectedly hiked the rate from 3.00% to 3.25%. And this month it is expected that they will hike it again from 3.25% to 3.50%. Click here to read what it means for the currency when Australian government raises its interest rates.
On this one, it’s quite simple. If Australian government leaves the rate unchanged at 3.25%, we will probably see AUD/USD go down by around 80 pips or more. If for some reason, the rate is hiked by 0.50%, to 3.75%, then we will probably see AUD/USD go up by around 80 pips or more. If they hike as expected by 0.25%, I would stay out and do nothing.
For example, last month, it was expected that the rate would stay unchanged at 3.0%, but Australian government hiked it to 3.25%. In the first 6 minutes, we saw AUD/USD go up around 85 pips. You can see the chart of what happened by clicking here.
In case the currency drops so quickly that you are not able to get in and make money, you can read the after-spike strategy for this report by clicking here.
This is all I have to say about Monday, November 2nd I hope you make some money with this information, and I will write to you again tomorrow, about Tuesday, November 3rd.
Please Have a Happy Day
-Felix
Sir Pipsalot will continue posting his trading signals as well. You will be able to read them here: Sir Pipsalot's Daily Trading Signals
As always, the first week of the month is usually very busy. This week we have interest rate statements coming out of 4 major countries. We have employment reports coming out of 3 major countries. We have retail sales, and a few other things.
If you don’t know where to get live numbers for the economic reports mentioned above, you should consult with your forex broker. Most of them have news feeds built into their platform, so you can open it, and watch these numbers released live. The broker that definitely has the news feed is OANDA, The Currency Site: Foreign Exchange Services and Trading. If your broker doesn’t provide the numbers, you can always open a demo account with Oanda, and get access to their news feed this way.
1. Monday, November 2nd (4:30 am New York Time) UK
We are starting the day with Manufacturing PMI coming out of England. Last month, it came out at 49.5, and this month it’s expected to come out at 50.0. Click here to read what Manufacturing PMI means.
If manufacturing PMI reads 49.5 or below, it will be bad for the British pound, so we will probably see GBP/USD drop by around 40 pips or more. If it reads 50.5 or above, it will be good for the British pound, so we will probably see GBP/USD go up by around 40 pips or more.
For example, last month, on October 1st, economists expected this indicator to read 50.2, but the reading came out at 49.5. We saw GBP/USD drop 40 pips in the first minute, because it came out lower than expected. You can see the chart of what happened by clicking here.
It might happen that the currency will start dropping so quickly that you won’t be able to get in. In this case, you can try to get in on the retracement, and still make money. Click here to read after-spike strategy for this report.
2. Monday, November 2nd (10:00 am New York Time) USA
At 10:00 am New York Time, we have ISM Manufacturing index coming out of the US. Last month, it came out at 52.6, and this month it’s coming out at 53.0. Click here to read what ISM Manufacturing means. At the same time, we have US pending home sales coming out of the US as well. Last month, it came out at 6.4, and this month it’s expected to come out at 0.4. Click here to read what Pending Home Sales report means.
Both of these reports are important, so if there is a conflict, meaning that one comes out higher, and the other lower, I suggest staying out of the market, because the move is hard to predict. But if both reports come out better than expected, by at least 3 points combined, it will be good for US dollar, and we will probably see USD/JPY going up by around 30 pips or more. If they both come out worse than expected, by at least 2 points combined, it will be bad for US dollar, and we will probably see USD/JPY going down by around 30 pips or more.
For example, on September 1st, ISM Manufacturing came out at 52.9 versus 50.5, and pending home sales came out at 3.2 versus 1.6. So ISM came out by 2.4 points better than expected, and Home Sales came out by 1.6 points better than expected, thus 2.4+1.6=4.0 points combined. Within the first few minutes, USD/JPY went up by around 35 pips. You can see the chart of what happened by clicking here.
In case the currency drops so quickly that you are not able to get in and make money, you can read the after-spike strategy for this report by clicking here.
3. Monday, November 2nd (22:30 New York Time)
Then at 22:30 New York Time, we have interest rate statement coming out of Australia. Last month Australian government unexpectedly hiked the rate from 3.00% to 3.25%. And this month it is expected that they will hike it again from 3.25% to 3.50%. Click here to read what it means for the currency when Australian government raises its interest rates.
On this one, it’s quite simple. If Australian government leaves the rate unchanged at 3.25%, we will probably see AUD/USD go down by around 80 pips or more. If for some reason, the rate is hiked by 0.50%, to 3.75%, then we will probably see AUD/USD go up by around 80 pips or more. If they hike as expected by 0.25%, I would stay out and do nothing.
For example, last month, it was expected that the rate would stay unchanged at 3.0%, but Australian government hiked it to 3.25%. In the first 6 minutes, we saw AUD/USD go up around 85 pips. You can see the chart of what happened by clicking here.
In case the currency drops so quickly that you are not able to get in and make money, you can read the after-spike strategy for this report by clicking here.
This is all I have to say about Monday, November 2nd I hope you make some money with this information, and I will write to you again tomorrow, about Tuesday, November 3rd.
Please Have a Happy Day
-Felix