We´ll be trading the UK Services Purchasing Manager Index today at 4:30am (NY Time). This is a leading indicator similar to the Manufacturing PMI that was released early this week, here´s the forecast:
5:30am (NY Time) UK Services PMI Forecast 52.0 Previous 52.9
The Services PMI is tradable with a minimum deviation of 2.5 between the forecast and the actual release. If we get at least 54.5 or better, we could see some demand in the GBP and we will consider BUYING GBP/USD or GBP/JPY pairs. If we get a 49.5 or lower, GBP could weaken and we should look to SELL GBP/USD or GBP/JPY pairs. If the actual release is below the medium 50 level, then we should jump in (spike trade) and SELL GBP/USD or GBP/JPY pairs.
Important Note: The only time I´d recommend a spike trade is when there is momentum pushing the currency which, regardless of spread and slippage, could result in a profit if you hold on to the trade.
Use the after-news trading method. For more information on my methods:
Forex Trading Plan For UK Services PMI 11/03/11
November 2, 2011 by Leave a Comment