4:30am (NY Time) UK GDP q/q Forecast 0.4% Previous -0.2%
ACTION: (GBP/USD) BUY 0.7% SELL 0.0%
We’ll be trading the much anticipated UK Prelim GDP q/q for Q4 2009. As we know, GDP is defined as “the market value of all final goods and services produced within a country in a given period of time. It is also considered the sum of value added at every stage of production of all final goods and services produced within a country in a given period of time.” GDP is the basically direct measure of the economy’s health, and a stronger GDP means that the central bank will more likely to raise interest to curb inflation.
Our surprise factor is 0.3%, and we’ll look to possibly SELL GBP/USD at 0.0% or worse and BUY GBP/USD at 0.7% or better. This is the first positive GDP release from UK for some time now, and if we do get a positive release, it could mean that the economy in UK is on its way out of recession, therefore adding to the demand for GBP. However, if we get another negative release, the tide will turn as traders will dump any GBP in their portfolio.
Since the Prelim GDP is the first release of the quarterly GDP, it’s usually the one with most potential for surprise. This is probably the most important news event for UK in this week.
Related posts:
- Forex News Trading UK Prelim GDP 10/26/10
- Forex News Trading UK Prelim GDP q/q 01/25/11
- Forex News Trading UK Prelim GDP q/q 04/27/11
- Forex News Trading UK Prelim GDP q/q 07/26/11
- UK 2nd Quarter Prelim GDP Analysis & Video 07/23/10
- UK Revised GDP q/q 02/26/2010
- UK Revised GDP q/q 11/25/09
- UK Final GDP q/q 03/30/2010
- Forex News Trading UK Revised GDP q/q 02/25/11
- Forex Trading Plan For UK Revised GDP q/q 08/27/10
