Forex Trading Signal 12/14/07

Let's first review what happened earlier today.

At 3:30 a.m. we had Swiss Interest Rate statement. They left the rate unchanged so it was a no trade.

At 8:30 we had U.S. Retail Sales. It doubled my trigger I gave you, and also the PPI came out in the same direction. USD/JPY opened at 111.90, and in the first 15 minutes it moved 40 pips, and then it went even higher, moving total of 55 pips from pre-release price. To learn why I traded USD/JPY, not GBP/USD, please watch the video. I speak a lot about it on the video, and I strongly encourage you to watch it. Anyway, I hope you made a good money on this report.

Let's now talk about tomorrow.

1. Friday, December 14th, 2007 (8:30 a.m. New York Time) USA
We will have only one tradable indicator, and that is Core CPI coming out of the U.S. It is expected to come out at 0.2%. I think this is worthy to trade with any deviation. If it comes out at 0.1% or lower, that would be dollar weakening so buy signal on GBP/USD, and we can expect 35 to 50 pips move or more in the first hour of the report. On the other hand, if it comes out at 0.3% or higher, we can expect a sell signal on GBP/USD, good for 35 to 50 pips or more in the first hour of the report. The CPI is less in focus than it used to be so we may get a choppy price action but still quite important.

SUMMARY:
* Report: US Core CPI
* Buy on GBP/USD if the number will be 0.1% or lower
* Sell on GBP/USD if the number will be 0.3% or higher

That's all for tomorrow.

Thank you very much, and good luck with your trades.

To Our Success!