Forex alert for 12/07/2006
Hi there folks 
Okay, so let’s review what happened earlier today.
REVIEW OF 12/06/06
UK Industrial Production
Industrial Production came out was worse than expected it was a beautiful trade.? We caught the initial spike with 2 units, then caught the second wave, and then made a couple of pips on the retracement.? To watch the video of this trade, please go to the link below:
http://forexdiamonds.com/video.php?video=120606_UKIndustrialProduction
US ADP Employment
ADP Employment came out slightly better than expected, didn’t hit my conservative trigger, but to my surprise GBP/USD moved down 40 pips on this report.? First time I see such big move on such small deviation on this ADP report.? I’ll take this into consideration next month on this trade.? ADP Employment report first came out in May of this year, and it seems to get more and more respect every month.
NEW ZEALAND Interest Rate Statement
New Zealand left the rates unchanged.? Bollard was extremely hawkish on his speech.? In the beginning of the speech, there were some conflicts, he first said that they are lowering their expectations on inflation, but they will raise the rate if needed.? That were conflicting comments so we saw AUD/NZD go down 30 pips, and then go right back up 30 pips, nasty whipsaw action.? Then as speech unfolded, Bollard gave further hints regarding the interest rate hike next year.? Overall, AUD/NZD dropped on this speech 100 pips in the first hour.? I stayed out of this trade.? Too many conflicts at the beginning of the speech, and as the speech was being unfolded, I didn’t want to chase the price, because I didn’t know how much more fuel it had.? In addition to that, I had the time for this report mixed up, so came in to my trading station few seconds before the rate release and speech.
AUSTRALIA Employment Figures
Australian employment came out way better than expected.? Made decent money on the initial spike, then made a couple of pips on the retracement down, totaling 21 pips total.? Unfortunately the video of this report is unavailable due to a technical difficulty that the person that records my videos had.? Instead of AUD/USD pair, he recorded everything on AUD/NZD pair, which had completely different price action.
ROB GRESPI from www.kingforexsignals.com
Rob Grespi had another beautiful day today, making 99 pips total.? He took 7 trades.? His total so far for December is +332 pips.? Not bad, considering that we only had 4 trading days in December so far.
To watch videos of his yesterday’s trades, please go to this link:
http://www.kingforexsignals.com/robtrades1206.htm
Here is what’s going on tomorrow.
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, so I won’t be trading it.? 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.
That’s all for tomorrow
Cheers
(source: www.forexbastards.com)