The Fundamental FOREX Blog

On Tuesday, 06-01-10 at 4:30AM ET, the GBP Purchasing Managers Index Manufacturing report is scheduled for release.

I did a “follow up” post last month on Monday, 05-10-10 , click here for a review.

This PMI Manufacturing Index 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 = 58.0

Forecast = 57.8

Here is how I am set up:

GBP-4-30AM-ET-06-01-10
Looking for a 1.8 change
Actual > Forecast = Good for GBP
GBP Manufacturing PMI
——actual——forecast—–previous
_____________57.8_______58.0
out at 59.6 or higher buy GBP/USD
out at 56.0 or lower sell GBP/USD
Watch for reversal!

I did not enter a trade last time!!

I am going to use a 1.8 “actual” 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 this time.

If the “actual” comes out higher than the “forecast” by 1.8, 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”.

I will be looking for a reversal after about 3 minutes – maybe!!!.

I did post a “follow Up” soon after, click here to see what happened.

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 Thursday, 07-01-10 at 4:30 AM-ET, however, at times scheduling of releases may change.

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

Stay tuned!