Forex rebates on every trade - win or lose!

It's all on the CPI and whether Merv has to write a letter to Gordon The Moron. I'd love to have been a fly on the wall if/when he wrote it.

:o)

Had a dream last night that cable went to 2.1000 this morning on terrible CPI! Oh how sad I'm becoming.

I just can't see that the CPI's going to be good if interest rates went up unexpectedly, but maybe not that bad!!!

It's all down to whether the strike was because of bad data or whether it was pre-emptive, Seymour. The market clearly thinks the data was bad and is expecting Merv to have written a letter.

UK inflation rate increases to 3%

The UK's rate of inflation jumped to 3% in December, according to the latest set of official figures.
The rise in the Consumer Prices Index, up from a rate of 2.7% in November, was at the top end of expectations.

However, an increase had been widely expected following last week's shock rise in interest rates to 5.25% by the Bank of England.

Retail Price Index inflation, which includes mortgage interest payments, rose to 4.4% in December from 3.9%.

No letter though.

How rude is that?

Should we write one for him?

Bit disappointing really. I was looking forward to a good laugh.

Dunno if this link will work or not (it's a pdf thingie)

Merv's principle on the Maradona theory of interest rates

As Gordon Brown put it ... "a credible framework means working within clearly defined long-term policy objectives, maximum openness and transparency, and clear and accountable divisions of responsibility."

Following a shock which moves inflation away from target and output from its normal level, there is discretion about the horizon over which inflation is brought back to target. But the exercise of that discretion must be clearly explained and justified in terms of the need, in the words of the remit of the Monetary Policy Committee, to avoid "undesirable volatility in output".

Stop was moved to 1.9640 after figs, now closed +197 :-)

edit, nicked +7 from a short, now over the magic 200, waiting for direction from 1.30 figs now.

Are the drinks on you then, Seymour?

:o)

Sure are Hils, pop into Lambykins later and I'll be glad to buy you all a drink if you can lift me off the floor :-)

[20:11 GMT January 16] GBP/USD reversed course and fell during the US session on
relief that UK CPI did not breach the 3% ceiling that would have prompted
Governor King to have to explain the price jump to Chancellor Brown. Heavy
profit-taking in GBP/JPY was noted by a Russian account today which helped knock
cable back below the 1.9600 level, triggering stops. That same account had been
a cable buyer earlier in the day. A bounce to 1.9640 unfolded after wire reports
of an evacuation on Capital Hill, but prices quickly pulled back when it was
revealed the evacuation was linked to a broken pipe and not a terror-scare.
1.9590 held on two attempts. Stops are eyed above 1.9640 near-term.
Looking ahead to Wednesday, dealers will closely eyed the UK unemployment
figures for signs of wages pressures, a key component in the BOE"s recent
concerns. Some wage settlements still linked to the RPI-X and that index surged
even more than CPI this morning. Average earnings are seen climbing at a 4.2%
annual rate in November. US industrial production and TIC data are highlights
tomorrow. IP is seen up 0.1%. Anything over $60 bln on TIC will be okay.


[20:17 FOREX: Newspaper Headlines for Wednesday, January 17] San Francisco,
January 16.
* BOJ Policy Board Likely To Forgo Rate Hike At Upcoming Meeting - Nikkei
* Toyota Would Consider Tie-Up With Ford If Asked: President - Nikkei
* Australian House prices to rise 7% in 2007: report - ninemsn.com.au
* Australian Skills shortage 'to intensify in 2007' - Ninemsn.com.au
* Telstra Shares at Highest in 16 Months - news.com.au
* Melbourne Power Meltdown - Melbourne Age
* NZ Economists Split on Interest Rates - xtramsn.co.nz
* NZ Tourism Booms Despite Weather - xtramsn.co.nz
* OPEC makes Case to Cut Oil Output to Buoy Prices - Melbourne Age
* Speculators the target, Bank of Thailand - Melbourne Age
* Crude Drops Further - nzcity.co.nz
* The Amazing NZ Business Confidence U-turn - NZ Herald
* Won Unlikely to Alter Course Near Term - Korea Times
* Korea Overseas Investment Promotion Policy Irks Offshore Funds - Korea Times
* Korea Concern over Japan-Like Stagnation - Korea Herald
* New Tax Breaks Stoke Concerns About Capital Outflow - Korea Herald
* Japan Commodities Brokers Clean Ranks - HK Standard
* Yuan Gains as China Looks to Narrow Trade Gap - HK Standard

Nice one SC :)
Not being funnny - but walk away this week and keep the smile on your face.

Me, I'm still trading short - goes against the grain at the moment, but I had to change in the face of the obvious a couple of weeks ago. Short term, that down slopey line from the recent cable highs is a huge obstacle - had a sell order kick in this morning at 1.97 and I'm going to leave it for now. The daily's been turning up, but the hourly's doing the opposite. More data to come over the next few days. For starters today the market swallowed the bad US manufacturing figures, (and talk about the news fitting the chart after our CPI stuff!) so I'll hang in a bit.

Still a bull at heart :)

Hi Choccy, I was thinking that was quite enough for one week anyway. This last trade was a fairly obvious one from a fundamental point of view; can't see anything too obvious now apart from your downtrend on the hourlies which I had spotted.

Well yesterday I agreed that this was a no-brainer short down from 1.97. This morning, I'm not so convinced and have closed my short ahead of being stopped.

I'm reluctant to go long again though (basically because I got up a bit late and feel that I had missed the best opportunity between 6am and 7am) so I'm sidelined for now. The attempt at 1.97 was very feeble, so I wouldn't be surprised to see it have another shot at it today. If it goes, 1.9770 or thereabouts has got to be a first target imo.

looking for 1.9700 or if lucky 1.9750 later today....

There she blows!! 1.9708 how far do you reconn?

Well, it went and poked its head up to 1.9717, but it didn't seem to like it up there . . .

staying long here...