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Forex News Trading Strategies For The Week of February 16th-20th
Posted On 16 Feb 2015
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This week’s “high impact” news event that I will be looking to trade is as follows;
Wednesday 18th February 2015
GBP – Average Earnings Index & MPC Official Bank Rate Votes – 9:30am
Looking back at last week’s trade of the week the UK quarterly inflation report and commentary from Carney we were expecting to see some GBP support as the BoE reiterate that their core focus was on labour and average earnings data whilst paying less attention to CPI given that a temporary lull is expected on account of oil prices. We managed to get a speech from Carney as expected which of course aided the GBP but brings us to this week and as a follow on we’re going to be looking for a continuation of support in this average earnings data .
Averages earnings are what the BoE are using as their guide to whether or not they are going to hike rates over the next 12 months, it had previously improved to 1.7% and is expected to remain unchanged which is solid. The bank rate votes are expected to remain unchanged at 9-0 as they only recently changed last time they voted back to a 9-0 from a 7-2, therefore we want to pay attention to the average earnings figures to present opportunities to trade if this figure comes in the same or better we can expect to see support of the GBP continue.
If the data points come out as negative this will really send the GBP lower given how it is now a point of focus for the central bank and market alike- however in my opinion this is something you can trade into as the jobs data coming from the UK has continually been positive recently and the bias leading into the event is that it is set to continue as such I will be buying the GBP leading into the event on the expectation that average hourly earnings will remain solid and support the view that the BoE are next in line to hike rates after the FED.
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Source:: Forex News Trading Strategies For The Week of February 16th-20th
