Today we had two pieces of mid importance data from
European Union and United Kingdom. It was Purchasing Manager Index Services.
Both releases have already come out. The data from Europe was worse than
expected: 48.3 actual versus 48.6 expected. The news came at 08:00 GMT. The
market did not react to that as it was waiting for the release from Great
Britain. It came half an hour later at 08:30 GMT. And the data was far much
better than expected: 56.9 actual versus 54.5 expected.
A lot of British Pound pairs soared and will
probably continue their ascent as market participants expect some bullish
position from tomorrow’s UK interest rates event. I personally, expect gbp/chf
to climb higher past 1.4500 level that is a significant barrier for the pair to
proceed higher. Whether it takes this level or not entirely depends on the Bank
of England position. I intend to trade this Forex news with very tight stops
and expect to make some money. Interest rate decision also comes from European
Central Bank. Do not forget that post event conference is more important that
the release itself as the president Draghi should deliver some kind of
statement about the bank’s decision as well as some kind of guidelines
regarding future financial policy of ECB.
