FX Trading Signals for Dec 07

1. Thursday, December 7th, 2006 (7:00 am New York Time) UK
We have interest rate statement coming out of UK. It's expected to stay unchanged at 5%. If for some reason UK hikes the rate to 5.25%, I may possibly go long on GBP/USD. If they bring the rate down to 4.75%, I may possibly go short on GBP/USD. These scenarios are pretty much impossible though...most likely UK will leave the rates unchanged. What will be important are comments after the rate announcement. If comments are hinting towards another rate hike next year, I may possibly go long on GBP/USD. If comments are suggesting that there will probably be no more rate hikes again, then I may possibly go short on GBP/USD.

2. Thursday, December 7th, 2006 (7:45 am New York Time) E-12
We have interest rate statement coming out of E-12. It's expected to be raised from 3.25% to 3.50%. If the raise happens, it's already priced in, but still i go long in it for 30 odd pips. However, if Euro zone changes the rate unchanged at 3.25%, I may possibly go short on EUR/USD. Or if the rate is raised to 3.75%, I may possibly go long on EUR/USD. Such scenarios are also extremely unlikely.

3. Thursday, December 7th, 2006 (8:30 am New York Time) E-12
Then we have Trichet speech, commenting on the interest rate statement. If Trichet hints towards more rate hikes in the future, I may possibly go long on EUR/USD. If Trichet hints that the current rate is comfortable and they most likely won't need to do another rate hike any time soon, then I may possibly go short on EUR/USD.