The Fundamental FOREX Blog

On Thursday, 10-01-09 at 4:30AM ET, the GBP Purchasing Managers Index Manufacturing for September was released.

This report is released by Markit on a monthly basis.

You can see my “preview” post by clicking here.

This report is released 2 minutes prior to subscribers of Reuters. So, you will see the currency markets start to move 2 minutes prior to the release to the general public.

I have an earlier post of another economic news release that illustrates how to get the news release within just a few moments of the scheduled release, click here to check it out.

For this report I had set up to trade the currency pair GBP/JPY using a 0.7 difference between the “actual” and the “forecast” – the “forecast” was 50.2 and the “actual” came out at 49.5, a 0.7 difference which was NOT good for the GBP, but should have been good enough for a trade against the GBP.

The early bird report receivers sold off the GBP two minutes prior to the general public release – then after the release of the report, the traders were buying the GBP. This did not make a lot of sense .

A similar situation shows on my last post for this report, click here to see my “follow up”.

Here are the charts for the GBP involved currency pairs I watch for this day.

a one minute EUR/GBP chart

a one minute GBP/CHF chart

a one minute GBP/JPY chart

a one minute GBP/USD chart

As you can see, the traders moved against the GBP 2 minutes prior to the public scheduled release of the report, which was the right thing to do, then the market reversed in favor of the GBP when the report was released to the public. This was not what I figured would happen.

Fortunately, I did not enter a trade, I certainly would have had a loser.

The next time this report is scheduled for release will be on Monday, 11-02-09 at 5:30 AM ET

I will probably post a “preview” a day or two prior.

Stay tuned!