Today was uneventful with the UK Trade Balance missing our triggers. There was only around .35b in deviation which missed our trigger of .5b. I did receive two reports of traders that took a lower trigger and picked up around 15 pips but it was a no trade for me. Due to some technical difficulties I was not able to record this session so there is no video for this trade.
OUR NEXT LIVE ON THE NEWS TRADE CALL
Tomorrow will be an intrusting day because we have news coming out of the US as well as Canada. The Canadian news should be pretty cut and dry however the US data will be fairly complicated. I am considering sitting on the sidelines for this one. We have the US PPI and the US Trade Balance coming out at the exact same time.
Both of these pieces of data could move the market substantially so we must be very cautious. First they will both have a similar affect on the market. A higher than expected number will strengthen the US dollar resulting in a sell on the GBP/USD and a lower than expected number will signal a buy.
Generally the US Trade Balance would require at least 1.5 in deviation and a close eye should be kept on the revision as it is commonly enough to affect the market.
The PPI Core which will be the main focus is expected at .2. We generally don’t trade this but I did a little research on this And it seems as if it really needs some good deviation to be Consistent. I would like to see around 1.0 for this to give a Signal.
Because we have two releases that could affect the market in different ways this will be very difficult to trade. If numbers come out conflicting the market will probably whipsaw and be very volatile, If both numbers are in agreement the market could move substantially (70 to 100 pips). I personally have not decided if I will trade this or not but if I do it will be with fewer lots than normal.
The second country releasing data is Canada and this data should be quite a bit easier to trade. The Trade Balance is expected around 6.0 and a higher number would signal a sell and a lower number will signal a buy. Its important that you do not trade the USD/CAD as it will be affected by the us data. I will be trading the EUR/CAD on this data and will look for around .8 in deviation on this release.
Good Luck!!!!
