The Fundamental FOREX Blog

On Friday, 08-06-10 at 4:30 AM ET the GBP Industrial Production MoM , and Manufacturing Production MoM reports were released.

Two other reports were released as well:

GBP PPI Input m/m
GBP PPI Output m/m

All 4 reports are released monthly by the UK National Statistics

On Thursday, 08-05-10, 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.

No trade this time – not enough difference!!

Here is how it was set up for 08-06-10:

GBP – Industrial Production MoM stats:

Previous = 0.7%

Forecast = 0.3%

Actual = -0.5%

Manufacturing Production MoM stats:

Previous = 0.3%

Forecast = 0.5%

Actual = 0.3%

Here is how I was set up and what happened:

GBP-4-30AM-ET-08-06-10
Looking for a 0.4% difference
Actual > Forecast = Good for GBP
GBP Industrial Production (MoM)
——actual———-forecast——-previous
________________0.3%_______0.7%
____-0.5%_______ 0.3% ______0.7%
Out at 0.7% or higher – SELL EUR/GBP
Out at -0.1%  or lower- BUY EUR/GBP
Bad – “actual” came out lower then “forecast” by 0.8%
Bad – “actual” came out lower then “previous” by 1.2%

GBP Manufacturing Production m/m
_______0.3%______0.5%_______ 0.3%
Bad – “actual” came out lower then “forecast” by 0.2%
Neutral – “actual” came out same as “previous”

Here are the charts:

(EUR/GBP)

a one minute EUR/GBP chart

At the report release, this EUR/GBP currency pair moved up for 38 minutes about 29 PIPS

(EUR/JPY)

a one minute EURJPY chart

At the report release, this EUR/JPY currency ranged for 30 minutes!

(EUR/USD)

a one minute EUR/USD chart

At the report release, this EUR/USD currency pair moved down 1st 4 minutes about 7 PIPS
Moved up for 13 minutes about 6 PIPS

(GBP/CHF)

a one minute GBP/CHF chart

At the report release, this GBP/CHF currency pair moved down for 38 minutes about 52 PIPS

(GBP/JPY)

a one minute GBP/JPY chart

At the report release, this GBP/JPY currency pair moved down for 42 minutes about 57 PIPS

(GBP/USD)

a one minute GBP/USD chart

At the report release, this GBP/USD currency pair moved down for 38 minutes about 60 PIPS

The next scheduled release of this report will be on Tuesday, 09-07-10 at 4:30 AM ET.

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

Stay tuned!