The Fundamental FOREX Blog

On Monday, 02-01-10 at 4:30AM ET, the GBP Purchasing Managers Index Manufacturing report was released.

I did a “preview” post for this month on Sunday, 01-31-10 , click here for a review.

This months report is released along with 5 other reports:

GBP Mortgage Approvals
GBP Net Consumer Credit
GBP Net Lending Sec. on Dwellings
GBP M4 Money Supply (MoM) (F)
GBP M4 Money Supply (YoY) (F)

This PMI Manufacturing Index report is now released by Markit

The other reports are released by the Bank of England.

There was one thing to be aware of, subscribers to Reuters receive the data 2 minutes prior to listed calendar time.

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 = 54.1________revised = 54.6

Forecast = 54.1

Actual = 56.7

Here is how I was set up and what happened:

GBP-2-30AM-02-01-10
Looking for a 1.8 change
Actual > Forecast = Good for GBP
GBP Manufacturing PMI
——actual———-forecast———-previous
_____56.7________54.1________54.1
_____56.7________54.1________54.6
out at 55.9 or higher buy GBP/USD
out at 52.3 or lower sell GBP/USD
Good – “actual” came out higher then “forecast” by 2.6
Good – “actual” came out higher then “previous” by 2.6
Good – “actual” came out higher then revised “previous” by 2.1
Changed from last month to GBP/USD

This is one of those rare situations where the reports came out in favor of the countries economy, but all of the GBP involved currency pairs I set up for, moved in the wrong direction. Not certain why that happened – and I entered 2 trades and promptly lost both.

Here are the charts:

a one minute EUR/GBP chart

This EUR/GBP currency pair moved up 57 minutes about 40 PIPS – wrong direction

a one minute EUR/JPY chart

This EUR/JPY currency pair ranged for 14 minutes
Moved down next 5 minutes about 21 PIPS

a one minute EUR/USD chart

This EUR/USD currency pair ranged

a one minute GBP/CHF chart

This GBP/CHF currency pair moved down for 57 minutes about 80 PIPS – wrong direction

a one minute GBP/JPY chart

This GBP/JPY currency pair moved down for 57 minutes about 97 PIPS – wrong direction

a one minute GBP/USD chart

This GBP/USD currency pair moved down for 57 minutes about 74 PIPS – wrong direction

Had 2 losing trades this time!!

The next time this report is scheduled for release will be on Monday, 03-01-09 at 4:30 AM ET

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

Stay tuned!