Today, Thursday the 18th of June 09, at 10:00 AM ET, the Federal Reserve Bank of Philadelphia released their monthly Manufacturing Index report. Here are the results of the report.
Unfortunately the report was released 1 minute early, this caused some early unexpected trading to proceed.
The Manufacturing Index report was good for the USD and much higher than forecast which was a -17.8, the report was a -2.2.
The only USD currency pair which moved in the right direction was USD/JPY, which moved up about 45 PIPS in an hour with no major retraces.
Two other currency pairs moved very well, they were GBP/JPY which moved up about 120 PIPS in about 19 minutes, and EUR/JPY which moved up about 80 PIPS also in about 19 minutes. Both currency pairs reacted to the early release of the report.
I am going to show these 3 charts, each is a one minute candlestick.
this is the USD/JPY 1 minute chart - some miner scalps can be made
this is the GBP/JPY 1 minute chart - some major scalping can be made
this is the EUR/JPY 1 minute chart - some major scalping can be made
There is something one needs to be aware of, most brokers increase their “spread” during the first minutes of the report release. My broker increases the spread about 20 seconds prior to the scheduled release and holds it usually 2 to 3 minutes.
How does this spread affect a trade? Picture this, if you set up a “stop loss” of say 20 PIPS and the broker spread has increased to 20 PIPS – bad news if the trade goes in the wrong direction.
I usually wait until the broker spread has moderated, and after the revision, if any, has been posted.
More on how I set up for a trade sometime in the near future. I have a way of monitoring the report release, revision and my broker spread in such a way that I can make fast decisions and trades.
