Before looking at next week lets take a look at a couple trades from last week. We had a lot of them, but the last two were notable.
On Thursday the UK Official Bank Rate came out with a deviation of 0, but 2 of the 9 Monetary Policy Committee members voted to increase the rate causing a 55 pip push up within the first few seconds. It started retracing from there and retraced the whole way within a couple minutes. I was able to grab 15 or 20 pips on a couple stations as it started to retrace.
On Friday (today) we had the CAD CPI which came out at .2. This spiked 46 pips, hung in that area for about 15 seconds, then pushed down another 15 pips in the next 15 seconds. Within a minute it had moved down 80 pips. My slippage was from 22 to 24 pips on all stations, so with buy/sellPips of 18, all my entries were around 40 to 45 pips from the start of the spike.
I held onto these for about 30 seconds and closed for 10 to 20 pips once I got concerned about a retracement. Would have done a lot better to have kept holding, but I was happy to grab some profit and bail.
Next week will be a light one as we approach the end of March. The trade I will post is:
Thu 8:30 AM – CAD GDP
NOTE: Friday is a bank holiday for most of the world.