Hi there my forex friend 
Sir Pips is done with his finals so I have his video for you today.
Here is Sir Pip's video:
12-16-2008.swf
Let's first review what happened on Monday.
Basically U.S. Empire Manufacturing came out too close to expectations so it was not tradable.
Let's talk about Tuesday.
1. Tuesday, December 16th, 2008 (4:30 a.m. New York Time) UK
At 4:30 a.m. we will have UK CPI headline y/y. Higher inflation used to strengthen the currency and lower inflation used to weaken it but right now we see the opposite. If it comes out at 3.7% or 3.8%, GBP/USD should go up by 30 to 50 pips. If it comes out below 3.6%, we might have very weird price action. If it comes higher than expected, that is 4.0% or higher, this should be a good short (sell) opportunity on GBP/USD (after the initial spike up). THIS IS *NOT* A SNW TRADE as we might have temporary spike the other way.
2. Tuesday, December 16th, 2008 (8:30 a.m. New York Time) USA
Then at 8:30 a.m. we will have U.S. CPI core m/m. It is expected to come out at 0.1. If it comes out at 0.0% or negative, it might be a good buy on EUR/JPY, looking for 30 to 40 pips move. If it comes out higher than expected, I would sell USD/JPY and expect 30 to 40 pips move as well. THIS IS *NOT* A SNW TRADE, and there should be plenty of time to enter a trade. We will also have housing numbers, the market will most likely ignore it although if you see big conflicts here, stay away.
3. Tuesday, December 16th, 2008 (9:30 a.m. New York Time) USA
I, Crazy Cat, have finals at college but I don't think it is going to move the market. I would skip that - trading of course, not the finals. ;-)
4. Tuesday, December 16th, 2008 (2:15 p.m. New York Time) USA
At 2:15 p.m. we will have U.S. Interest Rate decision coming out. It is expected they will cut the rates by 50 bp from 1% to 0.50% but some economists expect 25 bp cut, and some others no cut at all. 0.25% cut may disappoint the market, and EUR/USD may go up by 50 pips. If they cut by more than expected, it could be weakening U.S. dollar as well but it is hard to say what the dollar would do. One thing for sure, the equity market is going to love it, so if they cut the rates by more than expected, EUR/JPY, AUD/JPY or GBP/JPY should go up by 50 pips. I am still not sure if I will be using SNW for this trade, or I will just enter "after the spike" type of trade - this I will decide a few minutes before the report.
That's all for today. Have a good trading session.
TRADE LIVE WITH SIR PIPS FOR $39.00 FOR 2 WEEKS
Sirpipsalot 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!
-Crazy Cat && Sir Pip
Sir Pips is done with his finals so I have his video for you today.
Here is Sir Pip's video:
12-16-2008.swf
Let's first review what happened on Monday.
Basically U.S. Empire Manufacturing came out too close to expectations so it was not tradable.
Let's talk about Tuesday.
1. Tuesday, December 16th, 2008 (4:30 a.m. New York Time) UK
At 4:30 a.m. we will have UK CPI headline y/y. Higher inflation used to strengthen the currency and lower inflation used to weaken it but right now we see the opposite. If it comes out at 3.7% or 3.8%, GBP/USD should go up by 30 to 50 pips. If it comes out below 3.6%, we might have very weird price action. If it comes higher than expected, that is 4.0% or higher, this should be a good short (sell) opportunity on GBP/USD (after the initial spike up). THIS IS *NOT* A SNW TRADE as we might have temporary spike the other way.
2. Tuesday, December 16th, 2008 (8:30 a.m. New York Time) USA
Then at 8:30 a.m. we will have U.S. CPI core m/m. It is expected to come out at 0.1. If it comes out at 0.0% or negative, it might be a good buy on EUR/JPY, looking for 30 to 40 pips move. If it comes out higher than expected, I would sell USD/JPY and expect 30 to 40 pips move as well. THIS IS *NOT* A SNW TRADE, and there should be plenty of time to enter a trade. We will also have housing numbers, the market will most likely ignore it although if you see big conflicts here, stay away.
3. Tuesday, December 16th, 2008 (9:30 a.m. New York Time) USA
I, Crazy Cat, have finals at college but I don't think it is going to move the market. I would skip that - trading of course, not the finals. ;-)
4. Tuesday, December 16th, 2008 (2:15 p.m. New York Time) USA
At 2:15 p.m. we will have U.S. Interest Rate decision coming out. It is expected they will cut the rates by 50 bp from 1% to 0.50% but some economists expect 25 bp cut, and some others no cut at all. 0.25% cut may disappoint the market, and EUR/USD may go up by 50 pips. If they cut by more than expected, it could be weakening U.S. dollar as well but it is hard to say what the dollar would do. One thing for sure, the equity market is going to love it, so if they cut the rates by more than expected, EUR/JPY, AUD/JPY or GBP/JPY should go up by 50 pips. I am still not sure if I will be using SNW for this trade, or I will just enter "after the spike" type of trade - this I will decide a few minutes before the report.
That's all for today. Have a good trading session.
TRADE LIVE WITH SIR PIPS FOR $39.00 FOR 2 WEEKS
Sirpipsalot 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!
-Crazy Cat && Sir Pip
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