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Forex Trading Signal 12/14/07

Discussion in 'Current Forex Trading Signals' started by Felix Homogratus, Dec 14, 2007.

  1. Felix Homogratus

    Felix Homogratus Commander in Chief

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    This is Sir Pips.

    If you wish to watch the video, just click on it, and then click on "play" icon. My video version is MUCH MORE detailed so I encourage you to watch it.



    Let's first review what happened earlier today.

    At 3:30 a.m. we had Swiss Interest Rate statement. They left the rate unchanged so it was a no trade.

    At 8:30 we had U.S. Retail Sales. It doubled my trigger I gave you, and also the PPI came out in the same direction. USD/JPY opened at 111.90, and in the first 15 minutes it moved 40 pips, and then it went even higher, moving total of 55 pips from pre-release price. To learn why I traded USD/JPY, not GBP/USD, please watch the video. I speak a lot about it on the video, and I strongly encourage you to watch it. Anyway, I hope you made a good money on this report.

    Let's now talk about tomorrow.

    1. Friday, December 14th, 2007 (8:30 a.m. New York Time) USA
    We will have only one tradable indicator, and that is Core CPI coming out of the U.S. It is expected to come out at 0.2%. I think this is worthy to trade with any deviation. If it comes out at 0.1% or lower, that would be dollar weakening so buy signal on GBP/USD, and we can expect 35 to 50 pips move or more in the first hour of the report. On the other hand, if it comes out at 0.3% or higher, we can expect a sell signal on GBP/USD, good for 35 to 50 pips or more in the first hour of the report. The CPI is less in focus than it used to be so we may get a choppy price action but still quite important.

    SUMMARY:
    * Report: US Core CPI
    * Buy on GBP/USD if the number will be 0.1% or lower
    * Sell on GBP/USD if the number will be 0.3% or higher

    That's all for tomorrow.

    If news trading seems to be very interesting for you, then I suggest you to go to Forex Diamonds - News Trading Education and read everything about this service. It is a live trading service I provide with Felix, and I will be able to show you exactly what I am doing as I am leading hundreds of traders just like you every day with very clear strategies on when to get in and get out. As people are following my trades, they are learning how to trade the news, feel comfortable with trading and make good profits. We offer 21 days free trial so you can just try it and see how you like it.

    Thank you very much, and good luck with your trades.

    To Our Success!
    -Sir Pipsalot
     
    #1 Felix Homogratus, Dec 14, 2007
    Lasted edited by : Aug 15, 2015
  2. mclanre

    mclanre Recruit

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    i am still on demo

    dear sir,i really enjoy your singnal.i also read about the diamond singnal on when to get and when to get out of trade.pls sir i love to subcribe for your diamond singnal by next year but i do not have credit card is there any other means of payment pls reply.
     
  3. joebryce

    joebryce Recruit

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    CPI - Dollar strength?

    Being new to FOREX this may be a stupid question. Why would increasing CPI signal dollar strength. Isn't CPI a price index and doesn't an increase indicate inflation. Doesn't rising inflation lead to dollar weakness?

    I could see that rising inflation may lead some to think that the Fed may lean towards tightening, but in this market the consensus seems to be that the fed will continue loosening.
     
  4. ferrari

    ferrari Recruit

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    CPI - Dollar Strength


    The Consumer Price Index measures the rate of inflation (i.e., the rate of price changes) experienced by consumers when purchasing goods and services. The primary objective of the central bank is to achieve price stability and when inflation rises above an annualized rate of approximately 2%, they respond by raising interest rates to bring prices down. Now higher interest rates attract foreign investment, thus increasing demand for the nation's currency. Hence a rising trend has a positive effect on the nation's currency.
     
  5. joebryce

    joebryce Recruit

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    CPI - Dollar strength?

    So that would imply this signal lesens the chances for further fed cuts? I don't see that being the case.
     
  6. Pharaoh

    Pharaoh Colonel

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    It's a bit counterintuitive, but the Fed raises rates to control inflation. Thus, a sign of a potential inflation problem means that there's an increased chance of a rate increase in the future.

    Normally, good things for the economy (higher employment, increased production, more exports, etc.) strengthen the currency and you can watch Wall Street and the value of the dollar both head upwards.

    On the other hand, Wall Street loves lower interest rates, and lower rates are often good for the economy, but long term currency investors love higher interest rates.
     

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