Forex News Trading UK MPC Meeting Minutes 11/23/11
MPC Meeting Minutes is scheduled to be released today and since it´s customary for BOE (Bank of England) not to release a statement along with its interest rate decision (2 weeks ago) if there were no changes to either rate decision or APF (Asset Purchasing Facility, UK´s quantitative easing program); today will be the first time for a glimpse into what took place during this meeting, here is the forecast:
4:30am NY Time UK MPC Minutes Forecast 0-0-9 Previous 0-0-9
The Trade Plan
We will be looking at the vote count today but because of the current economic situation in UK and the uncertainty of the overall market view on Sterling, I’d recommend to sit on the sideline or follow me in the traderoom to trade this release. Due to the nature of this release, you need to have a newswire or audio service in order to trade it. If we see a steady market reaction after the release, it may very well carry over to the NY Session, therefore I’d wait for 5 minutes before even deciding on a trade. If market moves steadily, then I will use the double-fibonacci method and follow that trend.
I´ll be looking for a after news retracement trade if we see some significant moves. For more information, please read:
Bank of England decided to keep its APT (Asset Purchasing Target) and its Interest Rate unchanged during the last rate meeting, which in itself is no surprise after the 75 Billion Pound AFT increase in the previous meeting. However, traders are going to be looking for languages on increasing APT further during today’s Minutes, and there is a strong possibility for a slight dip in GBP before the news due to speculators positioning for a negative outlook.
It is my opinion that the outcome of this meeting will have profound effect for GBP, if we get a strong surprise. Therefore I’d stay out of the market until then.
There are no pre-news considerations for this release, but if I were to choose a direction, I’d probably be looking to SELL on rally.