FX Trading Strategy for Nov 13

Now another week gets underway, and I hope we make some decent pips. This week will probably be a very crucial week, especially for the GBP/USD pair, since we have inflationary CPI figures coming out of both UK & U.S. So stay tuned.

Last Friday absolutely nothing happened out of that press conference from Bernanke/Trichet speeches.

Today we have one report coming out that's in my opinion is worth watching and possibly trading.

1. Monday, November 13th, 2006 (4:30 am New York Time) UK
We have UK PPI coming out for the month of October. We have quite a few numbers coming out at the same time, and it may be confusing to you. In my experience and opinion, the most important number is PPI core output. If that number deviates sufficiently, many times it can move the GBP/USD by 50 pips or more. The core output number is expected to come out at 0.1%. If it comes out at -0.1% or more negative, I may possibly go short on GBP/USD. If it comes out at 0.3% or higher, I may possibly go long on GBP/USD. If my trigger gets hit, and there is not too much significan conflict on the other output and input numbers, I believe a move of over 30 pips is probably going to be no problem...we might even see 50 pips...depending on where the price is at before the report.