UK Manufacturing PMI 10/01/09

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4:30am (NY Time) UK Manufacturing PMI Forecast 50.2 Previous 49.7
ACTION: GBP/USD BUY 52.2 SELL 48.00

DEFINITION:

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“UK Manufacturing PMI is a survey of purchasing managers in the manufacturing sector on various economic activities, including inventory, employment, orders, etc… A higher than 50 reading means expansion, or a less than 50 reading means contraction.”
As the pre-market sentiment at the time of writing this post, market is expecting to see this number to stay above 50, and as such there shouldn´t be much market reaction; however, if this number falls below 50, GBP could be under some selling pressure as the confidence level for Sterling has been rather low among traders.

If our BUY/SELL numbers are hit, we can expect GBP/USD to move 50 pips within the hour.

We are looking for a difference or deviation of 2.0 minimum, and remember that this is a leading indicator and its impact may affect the upcoming trend of this currency for the weeks to come, or at least for the month of October.

As usual, I’ll be trading this release live and then post back the results as soon as I can. With releases such as the PMI’s, there are usually a lot of expectations from speculators, therefore they usually make excellent news events to trade.

UPDATE: No trade on this one as the release didn’t hit our deviation. Market proved to be seesawing afterwards, therefore the no trade decision was justified.

About Henry Liu

My name is Henry Liu and I am a Forex Trader and Mentor. I help traders achieve consistent income trading Forex while spending less time trading. My focus in trading is a combination of Fundamental Analysis, Technical Analysis, and Market Sentiment. Far too many retail Forex traders concentrate on just one aspect of trading, technical analysis, and ignore everything else; it is my goal (and vision) to educate every trader on how to take advantage of news trading and become more balanced traders.

You can find more information about me on my Google Profile.

Comments

  1. cameron bruno says:

    Hello Henri
    i using forexfactory to check the release but it is little bit slow
    do you have another website ?
    thanks

    • Hi Cameron, you may use our currency strength meter which displays a pop out window with the actual news release of the high impact news. Alternatively, you could join our live FNTA trade room (forexnewstradingacademy.com) or you could use a live audio news wire service like tradethenews.com

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