4:30am (NY Time) UK Services PMI Forecast 56.7 Previous 56.6
ACTION: GBP/USD BUY 58.7 SELL 54.7
We will be trading the Services PMI figure today and our minimum deviation is 2.0 from the forecast release figure. If we get at least 58.7 or better, we could see further demand in the GBP and we should BUY GBP/USD or GBP/JPY pairs. If we get a 54.7 or worse release, GBP could weaken and we should look to SELL GBP/USD or GBP/JPY pairs.
Because PMI’s are leading indicators and are likely to set the tone for January 2010 for GBP, especially the Services PMI’s as from UK since UK’s economy is 72% services based; therefore traders look at this release for early direction in UK’s economy.
Definition:
“The Chartered Institute of Purchasing and Supply (CIPS) Services Purchasing Manager’s Index (PMI) measures the activity level of purchasing managers in the services sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation’s currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.”
Related posts:
- UK Services PMI 02/03/10
- UK Services PMI 11/04/09
- UK Services PMI 03/03/2010
- Forex News Trading UK Services PMI 01/06/11
- Trading Plan For UK Services PMI 06/03/10
- Trading Plan For UK Services PMI 07/05/10
- Forex News Trading UK Services PMI 12/03/10
- UK Services PMI 04/07/10
- Forex News Trading Plan UK Services PMI 11/03/10
- Forex News Trading Plan For UK Services PMI 10/05/10
