"Let's now talk about tomorrow.
2. Thursday, December 06th, 2007 (7:00 a.m. New York Time) UK
Then at 7 a.m. New York time we will have UK Interest Rate Statement coming out. This is going to be a hot indicator. About 70% economists expect UK to keep the rate unchanged at 5.75%, and there is quite a few people that expect them to cut the rate. If the UK cuts the rate to 5.50%, we may possibly see GBP/USD going down by 100 pips or more in the first hour of the report. On the other hand, if they keep the rate unchanged, and there is no statement, we may see GBP/USD recover by 50 pips or more in the first hour of the report. If they keep the rate unchanged but there is a statement that they are planning to cut in the future, then skip this report as it would be a no trade as there can be a very ugly price action."
Well, it didn't happen! I was religiously waiting for the news to come out ( I opened a short position just prior it as I was sure the boe will gut the rates down) and instead of heading south it just tested 2.196 quickly and retraced back up !!!! I lost 90 pips on that. I guess cable had it rally a day before all those news have been already built in.....Very disappointing....
