4:30am (NY Time) UK Services PMI Forecast 58.1 Previous 58.4
ACTION: GBP/USD BUY 60.0 SELL 56.0
We’ll be focusing on the Services PMI figure today out of UK and our minimum tradable difference is 2.0 between the forecast release figure and the actual release. If we get at least 60.0 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 55.0 or worse release, GBP could weaken and we should look to SELL GBP/USD or GBP/JPY pairs.
With the BOE Interest Rate decision coming on Thursday, market is concerned over UK’s economic outlook, and a worse than expected figure could push GBP/USD down to yesterday’s lows or even at the 1.5000 area; a better than expected release may not move GBP much as the overall sentiment is still uncertain; therefore I’d recommend to possible SELL from the top if the release is not a huge surprise to the upside.
UK’s economy is 73% Services related, if we get a strong release on this PMI, we could see GBP sentiment turn bullish.
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 03/03/2010
- UK Services PMI 02/03/10
- 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
- Forex News Trading UK Services PMI 01/06/11
- UK Services PMI 11/04/09
{ 1 comment… read it below or add one }
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Dfoliexx
Rio de Janeiro, Brazil
Ps: I do not speak English, I learn in the videos by the graphics, the text has it’s easier to translate.