An excellent forex news spike trade to start the week. This report doesn't always cause a big move, but when there is a decent deviation from the average analyst's estimates, forex traders can expect to make highly profitable trade. This was compounded by the fact that UK news has been good recently, so this news coming out strong certainly added to this Pound strength. There was a +1.9 deviation above the expected number, so this number was high enough to cause a 40 pip spike on GBPUSD, see the attached chart. Here are the numbers :
*(UK) OCT PMI MANUFACTURING: 54.9 V 53.0E (first MoM increase since May)
- Manufacturing Output index 56.4 v 54.5 prior (first MoM increase since March)
Unfortunately there was not enough of a pullback after the initial spike to get an afterspike news trade, but for those trading the spike with the Secret News Weapon, from the folks at Fast Economic News, there were good pips to be made.
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