Chapter 12 – Putting it all together (Part 2)

United Kingdom: Tuesday Services PMI
  Thursday Official Bank Rate

 

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Tuesday Plan: I will also focusing on the Services PMI from UK. I will be trading this particular release with either trade the spike or trade the retracement; if I see an established trend before the news release, I might be inclined to trade the sentiment… but with FOMC meeting scheduled later on today, I would probably pass.

Result: Services PMI came out as expected. Minimal market reaction as the market braces from the FOMC meeting from U.S. later in the afternoon.

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Thursday Plan: I will be focusing on the Interest Rate. My research on TTN (Trade the News) and other analysts yielded that an overwhelming majority feel that BOE will keep rates unchanged. Since there aren’t any statements from BOE unless they change the interest rate, I do not expect to see much market reaction. Therefore, I will prepare for a surprise hike or cut then either trade the spike or trade the retracement.

As far as sentiment trading, I will be looking for an established bullish trend forming late Tokyo session and early European session.

Result: Market sentiment was inclined for better GBP/USD as the sentiment went up 80 pips from Tokyo session to London open. A good 20 to 40 pips for sentiment trading was possible. Then the rate decision came out as expected with no surprises. With no accompanied BOE statement, the market was calm as everyone waits for ECB’s rate decision and Trichet’s Press Conference later on today.

 

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About Kelvin Ching

I'm a professional Forex trader and I have been trading for over 7 years. I was a series 3 broker and a registered CTA with the NFA, the main regulatory agency in the United States, and I have been involved at the highest levels in commodity trading. I also have a background in Information Technology, graphics design, and programming... I'm the co-founder of CurrencyNewsTrading.com, a site dedicated to fundamental analysis and news trading.

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