Wow massive move after the UK Construction PMI. Amazing what these small reports out of the UK can do. Based on the deviation a 15-25 pips move was all that a trader would normally expect. However the British Pound just kept depreciating against all major pairs, and this continued for over an hour, causing a 100 pip move. Then the rumor hit that there was dealer chatter that the German Bundesbank was a buyer of the EURGBP pair, this added fuel to the fire, not to mention Construction PMI at 51.6 was the lowest reading in 8 months, headlines like this tend to exaggerated the moves. The European PMI data earlier was mostly strong with Italian, French and German numbers coming out as expected or better. Technical factors also played a part as cable was seen to have failed to reach the 1.61 handle again. Anyhow this goes to show why it is always good to leave a bit of a news trade on in case you get a further move, as even a small deviation when combined with technical factors and market flow will cause the pips to flow into your account. Here's the numbers:
*(UK) OCT PMI CONSTRUCTION: 51.6 V 53.0E (lowest reading in 8 months)
Everyone get fired up about an 100 pip move when Australia raises rates, but then on this small UK report there is a 120 pip move, spread out over an hour with plenty of opportunity to get in. Personally I don't mind waiting an hour for decent pips, and I don't need to earn them all in 5 seconds. Sure it can be exciting. What I don't like is waiting hours and hours, even days for a trade to produce those pips
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