4:30am (NY Time) UK Services PMI Forecast 55.0 Previous 54.5
ACTION: GBP/USD BUY 57.0 SELL 53.0
We’ll be trading the Services PMI figure today out of UK and our minimum deviation is 2.0 from the forecast release figure. If we get at least 57.0 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 53.0 or worse release, GBP could weaken and we should look to SELL GBP/USD or GBP/JPY pairs.
With the GBP/USD trading at the top end of the range from the recent drop out of concerns of UK’s economic outlook, a worse than expected figure could push GBP/USD down to below 1.5000 or even at the 1.4900 area; a better than expected release may not move GBP much as the overall trend is still down; therefore I’d recommend to possible SELL from the top if the release is not a huge surprise to the upside.
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 01/06/10
- UK Services PMI 02/03/10
- UK Services PMI 04/07/10
- Trading Plan For UK Services PMI 07/05/10
- Trading Plan For UK Services PMI 06/03/10
- Forex News Trading UK Services PMI 12/03/10
- Forex News Trading Plan UK Services PMI 11/03/10
- Forex News Trading Plan For UK Services PMI 10/05/10
- UK Services PMI 11/04/09
- Forex News Trading UK Services PMI 01/06/11
