Profit Mongers @ 7:38 AM, Thursday November 17 2011
1000 US Philly Fed (+9.0 expected, +8.7 prior, -1 TO +15 range)
Philly Fed did have some big drops a few months ago and that really made the market worry that
a double dip recession was more likely. Although the USDJPY only dropped 15 pips on the big
-35 deviation, there were better moves in the EMini S&P and the other yen crosses had much better
moves of 60-70 pips. Last month this one came out close to expectations but had recovered a bit
from the horrid -30 number seen in August. This time the figure is expected to come out back
above the bull/bear line of Zero. If it can do this it should restore some confidence to the
markets at least in the USA....still markets are very focused on the bad situation in the Eurozone.
So whether a better reading on this will distract attention from Europe remains to be seen. About
a +/-15 on this one can be worth while to trade but the USDJPY usually doesn't move that many pips
unless you stay on it a longer time and of course it is vunerable to further selling and to the
BOJ intervening. Other YEn crosses like CADJPY are better options for gaining pippage from a good
deviation or using the EMini S&P500. This time it is not coming out with other major news, only
Leading Indicators which should not affect it.
--If it Philly comes out at +24 or higher USD/JPY should rally about 15-30 pips,
CADJPY or EMini should also move up.
--If it Philly comes out at -6.0 or lower USD/JPY should fall about 15-30 pips,
CADJPY or EMini should also move down.
Visit Profit Mongers website and check out our live trading room!