I wrote to yesterday to one of my friends that I thought if the UK employment data came out strong, that it might propel the usd/gbp higher to 1.5300. It appears we came within 5 pips or so of that target before pulling back. We are now right at the big figure of 1.5200 and hopefully everyone has had a chance to get in on the second entry recommended 12 hours or so ago.
The news during the early London session was positive for the UK. Jobless claims were forecast to fall by 20K, and that was bested (slightly) with a print at 20.8K. The unemployment rate was also slightly better at 7.8% as opposed to 7.9% forecast. The news pushed the pair higher as expected.
On the euro side, news was not quite so ebullient. While the CPI (Consumer Price Index) was flat, the Industrial Production figures were a good bit weaker than expected---missing the 11.4% figure with a release of 9.4%. The euro pulled back and fell below the key level of 1.2700. Some weakness seems inherent in the liquidity leading pair. Meanwhile the RSI has continued to fall as well.
But we'll look to the franc today for our short term trade. Having fallen more than 10 cents in the last month. The drop was stopped by support from back in March. We'll look for a bounce from here.
On the macro perspective, US retail sales fell slightly, -.5% as opposed to -.3 expected. And China's GDP figure which is due out on Thursday with expectations of 3.1%, has been rumored to see a revision down to 2.8%. Should that be true, it may really affect risk appetite.
So let's look forward to the day with the positions we have and see how the market reacts. Remember to keep your leverage as recommended, in case things don't pan out as expected.
The alert will be later tonight than usual, as I am planning dinner with my in-laws this evening, and will most certainly be back at the office rather late.
Happy Trading!
Bill
www.thefxtradingmasters.com
bill@thefxtradingmasters.com
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