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Today's Trade: Thursday 03 October

Discussion in 'Jarratt Davis- Trading Signals' started by Jarratt Davis, Oct 3, 2013.

  1. Jarratt Davis

    Jarratt Davis Special Consultant to the FPA

    Jan 24, 2013
    Likes Received:

    Hi Simon,

    Thanks for the question

    Basically this is one of those things that on the one hand can be a great way to make pips but on the other very tricky to trade consistently.

    Very often the price will tend to rally at the beginning of the week or most often the day before the figure is due to come out. If you read the financial news, you will frequently see articles talking about a rally because certain data is expected to be positive etc...

    The problem is that intra day sentiment can be affected by so many other variables, and those variables can be fleeting and fickle. So one day we might be expecting a great NFP figure (Tomorrows has been cancelled) but if something else has happened to cause traders to sell it instead they will basically ignore the 'anticipation' trade.

    That trade definitely exists but I would say it is more of a 'boredom' trade ... So if the figure is coming out on the GBP and its expected positive .... The GBP will rally the day before ONLY if there is nothing else going on, like no other news or central bankers speaking. (This is the safest time to trade it)

    It's very important to let you know that I do not really look for these as a set up, but I am aware that it happens.... I just have never really found a reliable way of working out when the market will pay attention to it and when something else will take precedent.

    Hope that makes sense, and if you have any more questions please just let me know :)


    - Jarratt Davis
    Fx trader, funds manager and Forex mentor

  2. yetiman

    yetiman Private

    Mar 10, 2012
    Likes Received:
    Thanks Jarrett sure does help.
    cheers Brian
  3. squidge42

    squidge42 Corporal

    Apr 7, 2011
    Likes Received:
    Yes perfect sense thankyou...I've got to be careful of those 'boredom' trades as you call them

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