Thursday, May 31st, 2007

1. Thursday, May 31st, 2007 (8:30 am New York Time) USA
We have a big boy coming out, the US GDP. This is the first revision of 1st quarter, and it may not be as important of a report as we had last month...but I think still worth trading. Consensus is very split on this one, but most expect an average reading of about 0.8% or so. I think if the reading comes out at 1.2% or higher, it would be a pretty close reading to previous number of 1.3%, and I think GBP/USD may possibly go down by 30 pips or more towards dollar strength in the first 30 minutes of the report. If the number comes out at 0.4% or lower, it would probably be bad for the dollar, and GBP/USD may possibly go up by 50 pips or more in the first hour of the report. Perhaps even smaller triggers could be used, and the moves could be smaller or biggers, depending on where the price is at before the report. Please note that we also have Canadian GDP coming out at the same time...

2. Thursday, May 31st, 2007 (9:45 am New York Time) USA
Then we have Chicago PMI coming out. Though the official time of release is 9:45 am, there will be a special subscriber group receiving the number at 9:42 am. That includes secret news weapon and forexdiamonds subscribers. Chicago PMI is considered a predictor of US ISM Manufacturing that comes out on Friday, so it's usually watched, and the market can react to it by sometimes as much as 50 pips or more, though usually it's a lot less. It's expected that Chicago PMI will read around 54 or so, which is a relatively healthy reading. If it reads 57 or higher, GBP/USD may possibly go down by 30 pips or more. If it reads 51 or lower, GBP/USD may possibly go up by 30 pips or more. Again, this move will largely depend on what happened to the US GDP earlier, and where the price is at before the report.