Trade Closed – 2007-01-31 10:20
Our half position in GBPUSD was stopped out at -40 pips as we just saw weaker Chicago PMI numbers at 48.8 versus consensus of 52.0 and weaker monthly construction spending at -0.4%. This was another tough loss since we were actually up approximately 15 pips after the strong GDP number earlier today.
Half position: -40 pips
Trade Update – 2007-01-31 09:00
We saw a strong headline GDP number at 3.5%, higher than the consensus of 3.1%. Barely a market reaction right after the report, but eventually GBP/USD traded lower and triggered our short order at 1.9500.
No adjustments at this time, so stay tuned for updates as we still have Chicago PMI report at 10:00 EST. Good luck!
There was a lot of uncorrelated movement in the majors during the Euro session as reports from the Eurozone, UK, and the Swiss took stage before this morning’s US reports. Traders are pausing for a moment as we are waiting for the release of the quarterly US GDP numbers at 08:30 EST.
So, we may see volatility after the GDP report and we will look for a breakout in GBP/USD. We saw a breakout out of consolidation to the downside during the Euro trading session, and we will look to jump in at direction. Here’s a trade idea:
Trade Idea: None – 2007-01-31 00:24
Today has been the day the markets have been waiting for as we have US quarterly GDP, Chicago Purchasing Manager’s Index (PMI), and most importantly – the FOMC interest rate decision in the line up for release later. All are vital indicators to the US economy, so we may see some fast action starting at 08:30 am EST. The market has been so muted for the past few days in anticipation of comments from the FOMC that traders may even stay out until after Fed Chairman Bernanke makes his comments.
So, no “Pick” for tonight as we wait until the beginning of the US session to position for tomorrow’s events. Stay tuned!