FX Trading Signal for Mar 08
1. Thursday, March 8th, 2007 (7:00 am New York Time) UK
We have UK interest rate statement coming out. About 85% of economists think that it will come out same as last month at 5.25%. There are still 15% of economists that are expecting a hike to 5.50%. If the UK hikes the rate, it would probably be good for the pound, and GBP/USD may increase 100 to 150 pips. UK won't probably cut the rates, they have absolutely no reason to do that. But of course as always, if rate is cut to 5%, it would probably be bad for the pound, and GBP/USD may decrease by 100 to 150 pips or more. If they keep the rates unchanged, then it would be a no trade. If for some reason there is a hike, and you can't get in before the spike, I would wait for approximately 40% retracement and get in then.
2. Thursday, March 8th, 2007 (7:45 am New York Time) E-12
Then we have Euro Zone interest rate statement, that's unanimously expected to be hiked to 3.75% from previous 3.50%. If for some reason the rate stays the same at 3.50% or is cut to 3.25%, it would probably be bad for the Euro, and EUR/USD may possibly decrease 80 to 120 pips or more. If the rate is hiked to 4.00%, it would probably be good for the Euro, and EUR/USD may possibly increase by 80 to 120 pips or more.
3. Thursday, March 8th, 2007 (8:30 am New York Time) E-12
Then we have Trichet speaking out of the Euro Zone. Unless you will be with me in the forexdiamonds.com room, or if you are an experienced trader, I don't suggest trading this speech, because it may cause crazy whipsaw action. But in general terms, if Trichet is hinting towards high inflation and more future hikes, EUR/USD may possibly increase by 30 to 50 pips or more. If Trichet is dovish, and is talking about slow inflation, and no hikes, EUR/USD may possibly decrease by 30 to 50 pips or more.
We have UK interest rate statement coming out. About 85% of economists think that it will come out same as last month at 5.25%. There are still 15% of economists that are expecting a hike to 5.50%. If the UK hikes the rate, it would probably be good for the pound, and GBP/USD may increase 100 to 150 pips. UK won't probably cut the rates, they have absolutely no reason to do that. But of course as always, if rate is cut to 5%, it would probably be bad for the pound, and GBP/USD may decrease by 100 to 150 pips or more. If they keep the rates unchanged, then it would be a no trade. If for some reason there is a hike, and you can't get in before the spike, I would wait for approximately 40% retracement and get in then.
2. Thursday, March 8th, 2007 (7:45 am New York Time) E-12
Then we have Euro Zone interest rate statement, that's unanimously expected to be hiked to 3.75% from previous 3.50%. If for some reason the rate stays the same at 3.50% or is cut to 3.25%, it would probably be bad for the Euro, and EUR/USD may possibly decrease 80 to 120 pips or more. If the rate is hiked to 4.00%, it would probably be good for the Euro, and EUR/USD may possibly increase by 80 to 120 pips or more.
3. Thursday, March 8th, 2007 (8:30 am New York Time) E-12
Then we have Trichet speaking out of the Euro Zone. Unless you will be with me in the forexdiamonds.com room, or if you are an experienced trader, I don't suggest trading this speech, because it may cause crazy whipsaw action. But in general terms, if Trichet is hinting towards high inflation and more future hikes, EUR/USD may possibly increase by 30 to 50 pips or more. If Trichet is dovish, and is talking about slow inflation, and no hikes, EUR/USD may possibly decrease by 30 to 50 pips or more.
posted by Naveen Pantera at 2:56 PM
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