Wednesday, October 03, 2007

Trading Signals and News Update For Wednesday

1. Wednesday, October 3rd, 2007 (4:30 a.m. New York Time) UK
At 4:30 a.m. New York time we will have UK Services PMI coming out which is expected to read at 56.8. As you know, services is about 80% of UK economy, and this indicator measures how well this sector of economy is doing. If the reading is at 59 or higher, I think that would be pretty good for the pound, and I think we may see GBP/USD going up by 40 pips or more in the first hour of the report. On the other hand, if the reading reads at 55 or below, we may possibly see GBP/USD going down by 30 pips or more in the first hour of the report. Of course the bigger deviation is, the bigger the move can be.

SUMMARY:
* Report: UK Services PMI
* Buy on GBP/USD if the number will be 59 or higher
* Sell on GBP/USD if the number will be 55 or lower
* If the trigger is hit, expect 40/30 pips or more in the first hour of the report.

2. Wednesday, October 3rd, 2007 (8:15 a.m. New York Time) USA
At 8:15 a.m. New York time we will have ADP Employment Change coming out of the U.S. As you may already know, ADP tends to predict a little bit of what the U.S. Non-Farm Payroll will read on Friday. It is expected it would read 55,000 or so. In my opinion, if the reading is 100,000 or more, it would be positive for the U.S. dollar, and GBP/USD may possibly go down by 30 pips or more in the first hour of the report. On the other hand, if the reading is at 0 or negative, I think GBP/USD may possibly gain 30 pips or more in the first hour of the report because it would be negative for the U.S. dollar.

SUMMARY:
* Report: ADP Employment Change
* Sell on GBP/USD if the number will be 100,000 or higher
* Buy on GBP/USD if the number will be 0 or negative
* If the trigger is hit, expect 30 pips or more in the first hour of the report.

3. Wednesday, October 3rd, 2007 (10:00 a.m. New York Time) USA
At 10:00 a.m. New York time we will have U.S. ISM Non-Manufacturing Index coming out. It is expected to read at 54.8. In my opinion, if this index reads 58 or higher, I think we may possibly see GBP/USD going down by 30 pips or more in the first hour of the report. On the other hand, if the reading reads 51 or lower, I think GBP/USD may possibly gain 30 pips or more in the first hour of the report. Remember, this is a very market moving indicator. Don't try to rush into it. Most likely it will spike, and go back to prerelease price so you could get a good entry on afterspike trade, regardless of deviation. Don't be fooled if the deviation is big. Even on big deviations the currency may not react that much on this indicator. Nevertheless, we should see at least 30 pips move.

SUMMARY:
* Report: U.S. ISM Non-Manufacturing Index
* Sell on GBP/USD if the number will be 58 or higher
* Buy on GBP/USD if the number will be 51 or lower
* If the trigger is hit, expect 30 pips or more in the first hour of the report.

That's all for Wednesday.


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