The Fundamental FOREX Blog

On Wednesday 01-20-10 at 4:30 AM ET, the GBP Claimant Count Change and ILO Unemployment Rate were released.

These two reports were released with four other economic news reports -

GBP Claimant Count Rate
GBP Average Earnings inc bonus (3MoY)
GBP Average Earnings ex bonus (3MoY)
GBP Bank of England Policy Meeting Minutes

I did a “preview” post of this months reports, click here for a review.

Both of these reports are released by the U.K.s National Statistics on a monthly basis.

GBP Policy Meeting Minutes is released by the Bank of England.

Here is the set up for this month:

GBP Claimant Count Change stats:

previous = -6.3K revised = -10.8K

forecast = -3.3K

Actual = -15.2K

GBP ILO Unemployment Rate stats:

previous = 7.9%

forecast = 8.0%

Actual = 7.8%

Here is how I was set up:

GBP-2-30AM-01-20-10
Looking for a 20K difference
Actual < Forecast = Good for GBP
GBP Claimant Count Change
——actual———-forecast———-previous
________________-3.3K________-6.3K
_____-15.2K _____-3.3K_______ -10.8K
out at 16.7K or higher – SELL – GBP/JPY
out at -23.3K or lower – BUY – GBP/JPY
Good – “actual” came out less then “forecast” by 11.9K
Good – “actual” came out less then “previous” by 8.9K
Good – “actual” came out less then revised “previous” by 4.4K

GBP Unemployment Rate
Actual < Forecast = Good for GBP
——actual———-forecast———-previous
____7.8%_________8.0%________7.9%
Good – “actual” came out less then “forecast” by 0.2%
Good – “actual” came out less then “previous” by 0.1%

Since both of these reports came out in favor of the GBP – I did venture a trade.

Here are the charts:

a one minute EUR/GBP currency pair

This EUR/GBP currency pair spiked down/up 1st minute about 11 PIPS/6 PIPS
Moved up next minute about 10 PIPS – wrong direction
Moved down next 18 minutes about 26 PIPS  – right direction

a one minute EUR/JPY currency pair

This EUR/JPY currency pair moved down for 58 minutes about 35 PIPS

a one minute EUR/USD currency pair

This EUR/USD currency pair moved down for 43 minutes about 39 PIPS

a one minute GBP/CHF currency pair

This GBP/CHF currency pair spiked up/down 1st minute about 21 PIPS/14 PIPS
Moved down next minute about 24 PIPS – wrong direction
Moved up next 17 minutes about 47 PIPS  – right direction

a one minute GBP/JPY currency pair

This GBP/JPY currency pair spiked up/down 1st minute about 24 PIPS/15 PIPS
Moved down next minute about 20 PIPS – wrong direction
Moved up next 15 minutes about 35 PIPS  – right direction
Entered a winning trade here!!

a one minute GBP/USD currency pair

This GBP/USD currency pair spiked up/down 1st minute about 20 PIPS/11 PIPS
Moved down next minute about 27 PIPS – wrong direction
Moved up next 15 minutes about 32 PIPS  - right direction

The next release of these two reports will be Wednesday, 02-17-10 at 4:30 AM ET.

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

Stay tuned!