Tuesday, July 17th, 2007 (4:30 a.m. New York Time) UK
We are starting the day with UK CPI at 4:30 a.m. NY time. It is expected to come out at around 2.3% versus 2.5% previous reading. In my opinion, if the reading comes out at 2.2%, or lower, it would be that the inflation is slowing, and it would probably give less chance of UK raise the interest rates again so we may see GBP/USD going down by 50 pips or more in the first hour of the report. On the other hand, it the inflation still reads 2.5% as it was last month, it would mean that inflation is not really slowing as it is still going strong, and there will be a good reason for the UK to hike the rate to 6%. Therefore, I think that would be bullish for the GBP/USD, and it may possibly gain 50 pips or more in the first hour of the report.
We are starting the day with UK CPI at 4:30 a.m. NY time. It is expected to come out at around 2.3% versus 2.5% previous reading. In my opinion, if the reading comes out at 2.2%, or lower, it would be that the inflation is slowing, and it would probably give less chance of UK raise the interest rates again so we may see GBP/USD going down by 50 pips or more in the first hour of the report. On the other hand, it the inflation still reads 2.5% as it was last month, it would mean that inflation is not really slowing as it is still going strong, and there will be a good reason for the UK to hike the rate to 6%. Therefore, I think that would be bullish for the GBP/USD, and it may possibly gain 50 pips or more in the first hour of the report.
SUMMARY:
* Report: UK CPI
* Sell on GBP/USD if the number will be 2.2% or lower
* Buy on GBP/USD if the number will be 2.5% or higher
* If the trigger is hit, expect 50 pips or more in the first hour of the report.
* Report: UK CPI
* Sell on GBP/USD if the number will be 2.2% or lower
* Buy on GBP/USD if the number will be 2.5% or higher
* If the trigger is hit, expect 50 pips or more in the first hour of the report.
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