The Fundamental FOREX Blog

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

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

This report is released 2 minutes prior to subscribers of Reuters by Markit. 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/USD using a 0.7 difference between the “actual” and the “forecast” – the “forecast” was 50.1 and the “actual” came out at 53.7, a 3.6 difference which was very good for the GBP, and was good enough for a trade in favor of the GBP.

The early bird report receivers bought the GBP two minutes prior to the general public release. Things changed when the report was released for the general public.

This months report was set up as follows:

GBP Purchasing Managers Index Manufacturing Index stats:

Previous = 49.5

Forecast = 50.1

Actual = 53.7
Good – came out higher then the “forecast” by 3.6, and higher then the “previous” by 4.2 – and good enough for a trade.

Here are the charts for the GBP involved currency pairs I watched for this day. The 2 currency pairs that were not GBP related which I watch did not have much action – EUR/USD and EUR/JPY.

a one minute EUR/GBP chart

This EUR/GBP currency pair spiked down the first 2 minutes prior to the report release – then moved up the first 3 minutes about 12 PIPS – wrong direction – then it moved down the next 30 minutes about 30 PIPS – right direction

a one minute GBP/CHF chart

This GBP/CHF currency pair spiked up the first 2 minutes prior to the report release – then moved down the first 3 minutes about 20 PIPS – wrong direction – then it moved up the next 30 minutes about 55 PIPS – right direction

a one minute GBP/JPY chart

This GBP/JPY currency pair spiked up the first 2 minutes prior to the report release – then moved down the first 2 minutes about 15 PIPS – wrong direction – then it moved up the next 31 minutes about 60 PIPS – right direction

a one minute GBP/USD chart

This GBP/USD currency pair spiked up the first 2 minutes prior to the report release – then moved down the first 3 minutes about 13 PIPS – wrong direction – then it moved up the next 30 minutes about 53 PIPS – right direction

I did a GBP/USD currency pair trade – had a win, but has you can see, there was more opportunity for some good “scalps” for 25 to 30 minutes.

The next time this report is scheduled for release will be on Tuesday, 12-01-09 at 5:30 AM ET

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

Stay tuned!