The Fundamental FOREX Blog

On Thursday, 07-08-10 at 4:30 AM ET the GBP Industrial Production MoM , and Manufacturing Production MoM reports were released.

These two reports were standing alone at this time.

On Wednesday, 07-07-10, I wrote a “preview” post of this months set up, click here for a review.

The Industrial Production reports appear to have the greatest impact on the currency markets, but the impact can be even greater if the Industrial Production and Manufacturing Production both come out moving in the same direction which did not happen this time.

No trade this time – not enough difference!!

These reports are released by the UK National Statistics Publication Hub.

Here is how it was set up for 07-08-10:

GBP – Industrial Production MoM stats:

Previous = -0.4%—————-revised = -0.8%

Forecast = 0.4%

Actual = 0.3%

Manufacturing Production MoM stats:

Previous = -0.4%—————-revised = -0.7%

Forecast = 0.5%—————-revised = 0.4%

Actual = 0.7%

Here is how I was set up and what happened:

GBP-4-30AM-ET-07-08-10
Looking for a 0.4% difference
Actual > Forecast = Good for GBP
GBP Industrial Production (MoM)
——actual———-forecast——-previous
________________0.4%_______-0.4%
_____0.3%_______ 0.4%______ -0.8%
Out at 0.8% or higher – SELL EUR/GBP
Out at 0.0%  or lower- BUY EUR/GBP
Bad – “actual” came out lower then “forecast” by 0.1%
Good – “actual” came out higher then “previous” by 0.8%
Good – “actual” came out higher then revised “previous” by 1.1%

GBP Manufacturing Production m/m
________________0.5%_______ -0.4%
_____0.7%_______ 0.4%_______ -0.7%
Good – “actual” came out higher then “forecast” by 0.2%
Good – “actual” came out higher then revised “forecast” by 0.3%
Good – “actual” came out higher then “previous” by 1.1%

Watch for conflict       Trade against it??

Here are the charts:

(EUR/GBP)

a one minute EUR/GBP chart

At the report release, this EUR/GBP currency pair spiked down/up 1st minute about 8 PIPS/11 PIPS
Moved down for 4 minutes about 8 PIPS
Moved up for 28 minutes about 25 PIPS

(EUR/JPY)

a one minute EURJPY chart

At the report release, this EUR/JPY currency pair moved down for 8 minute about 6 PIPS
Moved up for 1 minute about 12 PIPS
Moved down for 19 minutes about 21 PIPS

(EUR/USD)

a one minute EUR/USD chart

At the report release, this EUR/USD currency pair  ranged for 8 minutes
Moved up for 11 minute about 13 PIPS

(GBP/CHF)

a one minute GBP/CHF chart

At the report release, this GBP/CHF currency pair ranged for 7 minutes
Moved down for 7 minute about 16 PIPS

(GBP/JPY)

a one minute GBP/JPY chart

At the report release, this GBP/JPY currency pair ranged for 11 minutes  -
Moved down for 25 minute about 25 PIPS

(GBP/USD)

a one minute GBP/USD chart

At the report release, this GBP/USD currency pair moved up for 10 minutes  about 20 PIPS
Moved down for 24 minute about 40 PIPS

The next scheduled release of this report will be on Tuesday, 08-10-10 at 4:30 AM ET.

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

Stay tuned!