Forex rebates on every trade - win or lose!

Excellent trading again mg - only managed +50 from this mornings fall - I need to eat more shredded wheat I think :-)

Anyone know if todays UK CPI news at 9.30 is likely to have a significant impact on price?

Similarly for the US PPI news.

It depends whether the numbers are inline or not, Harlosh. CPI is a measure of inflation and higher inflation = higher chance of rising interest rates = strength in that particular currency.

Producer Price Index
Definition
The Producer Price Index (PPI) is a measure of the average price level for a fixed basket of capital and consumer goods paid by producers.
Why Investors Care?
The PPI measures prices at the producer level - before they are passed along to consumers. Since the producer price index measures prices of consumer goods and capital equipment, a portion of the inflation at the producer level gets passed through to the consumer price index (CPI). By tracking price pressures in the pipeline, investors can anticipate inflationary consequences in coming months.

Investors need to monitor inflation closely. An individual investor who understands the process of inflation and how inflation influences the markets will no doubt benefit over those investors that don't understand the consequences of inflation.

Inflation is an increase in the overall prices of goods and services. The relationship between inflation and interest rates is the key to understanding how data such as the PPI influence the markets - and your investments.

If someone borrows $100 dollars from you today and promises to repay it in one year with interest, how much interest should you charge? The answer depends largely on inflation, because you know that the $100 won't be able to buy the same amount of goods and services a year from now, as it does today. If you were in a country where prices doubled every couple of months, you might want to charge 400% interest for a total payoff of $500 at the end of the year. In the United States, the PPI tells us that prices were rising about 4 to 5 percent a year through the summer of 2005. While the CPI was rising less rapidly during this period, you would want to take into account the higher inflation rates evident at earlier stages of processing when you were determining what interest rate to charge simply to recoup your purchasing power within the next 12 months. You might want to add in one or two percentage points to cover default risk and the opportunity cost, but inflation remains the key variable in what interest rate you would charge.

Inflation (along with default risk and opportunity cost) basically explains how interest rates are set on everything from your mortgage and auto loans to Treasury bills, notes and bonds. As the rate of inflation changes and as expectations on inflation change, the markets adjust interest rates accordingly. The effect ripples across stocks, bonds, commodities, and your portfolio, often in a dramatic fashion.

By tracking the trends in inflation, whether high or low, rising or falling, investors can anticipate how different types of investments will perform.

Hilary, Choc, many thanks.

Wasn't sure you were still around Hilary. Thanks again.

annualised +2.5% higher than expected

Yes, it does impact :-))

H,

Yes I'm still here. I have a mooch around most days to check that you're all behaving.

:o)

Nice to know Hilary :-)

Thanks Hilary and Choccy for the CPI/PPI explanation. Learning new things on a daily basis.

Managed to squeeze out 40+ ticks this morning :-)

I've been monitoring the direction of the trend prior to a big news release over the last 2 weeks and have noticed that the spike up or down is more often in the direction of the trend. This begs the question whether the big boys have a whiff of the news before mere mortals like ourselves??

Broken all my rules - I think it's that MoTU thing.

a) shouldn't be trading whilst "working"
b) trying to guess the 60 minute turn by using the 10 minute
c) etc.

Net result is that I'm short from 290 and 280 with 50 point stops in place.

Ridiculous - so I deserve what's coming to me - unless I relent and take the hit ..... leaving them until 15:00

Flogging yourself in public mg. Kinky :-)

mg....your shorts are looking very healthy now.

Flaggelation seems to have worked - maybe I am the MoTU :)

The 10 minute may not be a bad indicator after all !

Did well after all - still think it was a bum decision - seat of the pants really.

Anyway closed for +40 and +30.

Now - discipline regained - no more trading until Friday - otherwise it's a severe reprimand from my imaginary friend - Capt. Sensible.

mg (Opus Dei flaggelant)

blimey!! what did bernanke say?

I know it's not Friday but I'm short - based on the 60 minuteMACD - from 500 and 496.

Let's see what tomorrow brings

PS - I didn't stick to my discipline and got burnt on shorts just before the big rise yesterday - went off to a meeting and found both positions stopped out for -50 each - so -100. It was a MoTU moment. Useful reminder that I'm not the MoTU :(

OK mg what's a MoTU?

I'm short too by the way.

Harlosh, MoTU - Master of The Universe!

Masters of the Universe -- wasn't that orginally the Salomon Brothers traders in NYC?