Trading Signals and News Update For Thursday

Let's now talk about what happened earlier today. We already had UK Average Earnings and Unemployment, and we will have two more reports later today that I will review tomorrow.

The UK average earnings came out slightly better than it was expected, claimant count change came out much lower, and the unemployment came out the same. Everything was positive for the pound, and we have seen GBP/USD going up. It opened at around 2.0325 or so, and within the first 15 minutes it reached 2.0365 so it was a 40 pips target. If you took advantage of this, congratulations.

Let's briefly talk about what's going on tomorrow.

1. Thursday, September 13th, 2007 (8:00 a.m. New York Time) SWITZERLAND
Tomorrow we have only one indicator coming out that I feel is worth watching and possibly trading, and it is going to be Swiss interest rates statement at 8 a.m. New York time. Switzerland has been on interest rate hikes spree, and they are expected to hike tomorrow; however, because of the carry trade unwinding and subprime mortgage market, people are not sure now if they will hike it. If for some reason Switzerland hikes their rate tomorrow from 2.50 to 2.75, we may possibly see GBP/CHF going down by 80 pips or more in the first hour of the report. On the other hand, if Switzerland leaves the rate unchanged, we may possibly see GBP/CHF going up by 80 pips or more in the first hour of the report. It is going to be a very interesting trade. Pretty much it is going to be a guaranteed trade. I don't know if it is going to be a profitable trade but it seems like fundamentally it will definitely be an extremely high probability trade.

SUMMARY:
* Report: Swiss Interest Rate statement
* Sell on GBP/CHF if they will hike the rate from 2.50 to 2.75%
* Buy on GBP/CHF if they will leave the rate unchanged at 2.50%
* If the trigger is hit, expect 80 pips or more in the first hour of the report.

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