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 Forex Analysis
22

News Trading Preview Wednesday 12-22-2010 (UK & US GDP)


3 reports tomorrow, NZD preview will arrive later:

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0430 UK GDP q/q final (0.8% expected,0.8% prior,0.4% to 0.8% range)

Affliated Reports:
UK GDP y/y final (2.8% expected, 2.8% prior, 2.6% to 2.8% range)

- Since this is the final revision, it is the least potent of UK GDP releases, and the least likely to give us a surprise. Nearly all estimates are for a 0.8% figure, with only 2 estimates otherwise. Nevertheless, if it does deviate by 0.2 or more, it should give us a solid 40 pip move and could continue to trend if significant. During the last release of Final GDP in September the GBPUSD rallied even thou there was no deviation.

It it comes out at 1.0% or higher, GBP/USD should rally 40 pips.
If it comes out at 0.6% or lower, GBP/USD should drop 40 pips.

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0830 US GDP Annualized Final Revision (2.8% expected,2.5% prior,2.5% to 3.3% range)

- This isn't a huge report since it's the final revision, but a decent deviation here should have a palpable effect. Sometimes this one can react on a smaller deviation such as in August, but in June's Final GDP release it caused whipsaw. With the weekly employment figures and other data released at the same time, it is better to use wider and safer triggers.

If it comes out at 3.3% or higher, USD/JPY should rally 30 - 40 pips.
If it comes out at 2.4% or lower, USD/JPY should fall 30 -40 pips.

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May the Pips be with you,
Magister Pips

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