NEWS TRADING
Tuesday November 17, 2009
[5:30pm KL Time]
UK CPI y/y BUY 1.7% SELL 1.1% GBP/USD
We'll focus on the CPI release today and our surprise factor (or
deviation) is at 0.3%. If the yearly Inflation number increases to
a surprise of 1.7% then we will BUY of GBP/USD. If the Inflation
number decreases to 1.1% or less, we'll look to SELL GBP/USD.
Historically, even at a difference of 0.1%, we should see market
overreaction. If our deviation is hit, there is a probability of
over 80% that the market will move 50 pips within the next 30
minutes.
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