ISM Manufacturing PMI Trade Plan 09/01/10

USA

ISM or Institute for Supply Management is releasing its PMI (Purchasing Manager Index) and it is similar to the UK Manufacturing PMI as this release is targeting the Manufacturing sector. As a leading indicator, traders generally pay attention to this report for hints of economic trend. Here’s the forecast:

10:00am NY Time US ISM Manufacturing PMI Forecast 53.2 Previous 55.5
ACTION: USD/JPY BUY 56.0 SELL 50.5 USDJPY

Trading Plan For AU GDP q/q 08/31/10

AUD

Australia GDP is a quarterly release similar to the U.S. Advanced GDP or the UK Pre-lim release, but usually there is only one release per quarter. Since this is a quarterly release, it is a high impact release that may change the short term trend of AUD. Here is the forecast:

9:30pm (NY Time) AU GDP q/q Forecast 0.9% Previous 0.5%
ACTION: AUD/USD BUY 1.2% SELL 0.6%

Forex Trading Plan For US New Home Sales 08/25/10

New Home Sales

U.S. New Home Sales usually follows the trend of Existing Home Sales, therefore we are likely to see a worse than expected figure. Here is the forecast:

10:00am NY Time New Home Sales Forecast 333K Previous 330K
ACTION: USD/JPY BUY 400K SELL 260K

The Trade Plan
We’ll trade this release using a deviation of 70K; if the release is lower, it would strengthened risk aversion sentiment and we should look to SELL USD/JPY; if the number is higher, it could provide a temporary support for the pair and we may see a slight rally in USD/JPY.

Forex Strategy For US Existing Home Sales 08/24/10

USA

US Existing Home Sales is expected to decline from previous month as current market situation is adding more pressure to the housing sector. Here’s forecast:

Existing Home Sales Forecast 4.70M Previous 5.37M
ACTION: USD/JPY BUY 5.10M SELL 4.30M

The Trade Plan
Because the Housing sector is one of the most important news events out of the US, this release will certainly cause some volatility in the market, especially if our tradable figures (+/- 400K) were hit. With the focus of the nation, and of the world, on the status of U.S. housing sector, this release may bring about a strong sentiment of risk appetite/aversion if our BUY/SELL trigger is hit…

Forex Trade Plan For UK CPI y/y 08/17/10

inflation

We’ll be trading the UK Consumer Price Index (CPI) release at 4:30am NY Time today. We’ll be looking at the yearly release figure and the market could react with lots of volatitility as CPI is the basic measurement of Inflation, therefore expect to see more exaggerated moves if we get a huge surprise release. Here is the forecast:

4:30am NY Time UK CPI y/y Forecast 3.1% Previous 3.2%
ACTION: GBP/USD BUY 3.4% SELL 2.8%

Forex Trade Plan For US Core Retail Sales 08/13/10

USA

We’ll be getting the Core Retail Sales (and Retail Sales) figure out of U.S. today, as high impact news releases are concerned, Retail Sales makes up about 2/3 of U.S. GDP (economy)… Here’s the forecast:

8:30am (NY Time) US Core Retail Sales Forecast 0.3% Previous -0.1%
ACTION: USD/JPY BUY 0.9% SELL -0.3%

Forex Trade Plan For US Core CPI 08/13/10

USA

We’ll be trading US Core CPI m/m release today. CPI or Consumer Price Index, also known as the “true cost of living”, is what drives Central Banks to raise/cut interest rate, therefore this release will be widely watched. At the same time, we also have the US Core Retail Sales, which is another strong high impact release that could change the short term market trend; therefore please also read my analysis on that release… Here’s the forecast for the CPI: