UK MANIFACTURING PMI

NEWS TRADING
Monday April 2, 2012
[4:30am NY Time]


Manufacturing PMI is a leading indicator that is usually
released early in the month. Traders pay attention to this
release for surprises as this survey may help to shape the
general trend of the currency for the rest of the month.
Here is the forecast:

4:30am (NY Time) UK Manufacturing PMI
Forecast 50.5 Previous 51.2
ACTION: GBP/USD BUY 52.5 SELL 49.0



 Trade PlanWe´re looking for a tradable deviation (or the difference between the forecast figure and the actual release figure) of 2.0. Since this is a leading indicator and its impact may hint the future trend of other economic indicators (such as inventory, employment, retail sales, etc..), the market usually reacts to this release with volatility if we get our deviation.

We´ll be looking to BUY  GBP/USD if we get a 52.5 or better, or looking to SELL GBP/USD if we get a 49.0 or worse.

DEFINITION“UK Manufacturing PMI is a survey of purchasing managers in the manufacturing sector on various economic activities, including inventory, employment, orders, etc… A higher than 50 reading means expansion, or a less than 50 reading means contraction.”