Forex Trading Signals by Magister Pips, 2012/01/31
9:45 US Chicago PMI (63.0 expected, 62.2 prior, 59.0 to 67.0 range)
Last time this was release on December 29th and low liquidity conditions prevailed. The number
was 62.5 vs. 61 expected and the market did little but chop about. The previous release was on
November 29th where a 62.6 came out above the 58.5 expected. Although this seems perhaps like
alot you really need a larger deviation for this news to be worthwhile. The USDJPY did eventually
rally 10 minutes after the release, but the other Yen crosses sold off. The September release was
the largest deviation so far at 60.4 vs. 55.0 expected. The CADJPY did sell off about 15 pips
but then did turn around and rally 70-80 pips. Be aware that this is actually released at 9:42
to special subscribers. You might notice some price action about 3 minutes before the release,
but be aware that there can be fakes out on this. The best way to approach this news is not to
spike trade it. Look at the established trend for the day and if the numbers deviate in the
direction of this trend then wait patiently for a pullback and try and join into the established
market flow. Watch for deviations of +/-5.0 to get in.
If it comes out at 68.0 or higher, buy USDJPY for 20-30 pips or buy CADJPY/EMiniS&P500
if it comes out at 58.0 or lower, sell USDJPY for 20-30 pips or sell CADJPY/EMiniS&P500
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