Forex Trading Signal 06/06/08

Forex Trading Signal 06/06/08 - Today, 07:16 AM
Hi my dear Trader

Let's first review what happened on Thursday.

At 3:00 a.m. we had UK Halifax House Price Index m/m which came out lower than expected. GBP/USD moved down by about 30 pips. Eventually, the price went down even more.

At 7:00 a.m. we had UK Interest Rate which came out as expected. At 7:30 a.m. we had Interest Rate statement out of Euro zone which also came out as expected.

At 8:30 a.m. we had Canadian Building Permits which came out 14.5% versus 0.5% expected. USD/CAD moved by 15 to 20 pips. We did not trade it so it was a no trade.

At 8:30 a.m. we also had U.S. Initial Jobless Claims which came out lower by 18K. USD/JPY moved by about 30 pips, not bad at all.

At 8:30 a.m. we also had Trichet speaking. This was incredible, EUR/USD moved by about 200 pips. We had a fantastic trade on the Diamonds room where we bough at 1.5374, 1.5402 and 1.5396 and 1.5440, and we are still on some of the position so not bad profit... Please watch the video for the detailed commentary.

At 10:00 a.m we had Canadian Ivey PMI which came out 62.5 versus 59 expected. It was a weak signal, and USD/CAD moved by only 20 pips.

Let's talk about Friday.

1. Friday, June 6th, 2008 (7:00 a.m. New York Time) CANADA
At 7:00 a.m. we will have Canadian Employment Change. It is expected at 10K. I would trade it with 15K deviation. If it comes out at 25K or higher, I would short USD/CAD, looking for 40 to 50 pips of price action. If it comes out at -5 or more negative, I would buy USD/CAD, looking for 40 to 50 pips. Watch out for the Unemployment Rate. If there is a conflict, it may screw up the move. Higher unemployment is bad for the Canadian dollar, and lower unemployment is good for the CAD. 0.1 deviation on unemployment rate should not be a big deal but 0.2 deviation may be dangerous if conflicting with the other number.

2. Friday, June 6th, 2008 (8:30 a.m. New York Time) USA
At 8:30 a.m. we will have U.S. Non-Farm Payroll. It is expected at -60K. If it comes out at -10K or better, I would buy USD/JPY and look for 50 pips of a price action. If it comes out at -100K or more negative, I would sell USD/JPY, and look for 50 pips of a price action as well. You will also need to look at revision that must deviate in the same direction. There are two rumors going on: 1) this month we will get a good number, and 2) last month is going to be revised down sharply because it was miscalculated. We will see what will happen. Also, watch out for the unemployment rate. If it deviates by 0.2 and it is in conflict with the other numbers, be very careful or even stay out. PLEASE watch the video, nearly all preview video is about NFP and some tips how to trade it.

That's all for this week.

Thank you and good luck with your trades.

To Our Success!