The Fundamental FOREX Blog

On Monday, 11-02-09 at 4:30AM ET, the GBP Purchasing Managers Index Manufacturing for October is scheduled for release.

I did a “follow up” post last month on Friday, 10-09-09 , click here for a review.

This months report is a “stand alone” report – last month the Bank of England was releasing the Credit Conditions Survey at the same time, this may have had some affect – do not know.

The report is now released by Markit

There is one thing to be aware of, subscribers to Reuters receive the data 2 minutes prior to listed calendar time. Be sure to take a look at what happened last month.

Prior to the present market conditions, a difference of 4 or 5 from the “forecast” could cause a good market move.

This months report is set up as follows:

GBP Purchasing Managers Index Manufacturing Index stats:

Previous = 49.5

Forecast = 50.1

I am going to use a 0.7 difference figure from the “forecast” to indicate a possible surprise to the currency trading market. And will be set up to trade the currency pair GBP/USD.

If the “actual” comes out higher than the “forecast” by 0.7, that would be good for the GBP and currency pairs involving the GBP could move in favor of the GBP – the opposite of course could happen if the “actual” is less than “forecast”.

Be sure to check out last months “follow up” post to see how the market reacted after the report was released. Click here.

Something to think about – the economists believe that the economy is  improving and their “forecast” of 50.1 may cause a bigger surprise to traders if the “actual” comes out below “forecast”, it may take a smaller difference – say 0.5 figure for a good move of currency pairs.

Now we all know that past performances are not an indication of future results!

It appears that the next scheduled release of this report will be on Tuesday, 12-01-09, however, at times scheduling of releases may change.

I wrote a “follow up” post on Friday, 11-06-09, click here to see.

Stay tuned!