UK BOE Inflation Report 08/12/09

5:30am (NY Time) BOE Inflation Report   N/A
ACTION: GBP/USD or GBP/JPY      BUY Hawkish     SELL Dovish

This is a quarterly report from BOE on projections of inflation and the economy for the next 2 years.  It is a very high impact report and it could affect the short-term to mid-term trend of Sterling.

If BOE is optimistic in its projection and focus on recovery, we should see immediately appreciation of GBP; if the opposite is true, then Sterling will probably drop substantially.  We’ll look at market reaction then wait for entry.

Since BOE recently increased its Quantitative Easing program by another 50 Billion Pound, many investors are looking at this report for hints on UK’s economic health condition, and of course its future monetary policy.  This report could have the power to decide GBP’s direction in the next 2 weeks or more, depending if we get similar data releases out of UK in the near future.  Watch how I trade this report LIVE in my update video.

Click here to watch the video

UPDATE: BOE Inflation was not as negative as most traders were expecting. As a matter of fact, most traders were waiting for an explanation over the increase of the APF program by 50 Billion.  Because of the overwhelming sentiment prior to the news, we saw a classic pricing in movement and then profit taking after the news… it was sobering as I quickly picked up 40 pips and predicted about 200+ more pips of movement in my trade room.  Everyone made over 100+ pips live trading with me.