Today's Signal

Let's talk Thursday - very simple day.1. Thursday, December 4th, 2008 (7:00 a.m. New York Time) UKAt 7:00 a.m. we will have UK Interest Rate statement. It is expected they will cut the rates by 100 bp from 3.00% to 2.00%. If they cut the rates to 2.00%, then initially the price action will be unpredictable but the resulting pressure should be higher on GBP/USD. If you can buy at the dip, buy it but probably it will be around pre-release price for a while so there will be plenty of time to set up a good trade. If they cut to 2.25% or 2.50%, GBP/USD may spike up but then it should reverse as this would be disappointing the market. It is tricky to trade but there is a way to make good money.2. Thursday, December 4th, 2008 (7:45 a.m. New York Time) EURO ZONEAt 7:45 a.m. we will have Interest Rate statement out of Euro Zone. Everyone is expecting at least 50 bp cut but some people are expecting bigger cut than 0.50% from 3.25% to 2.75%. If they cut to 2.75% or to 3.00%, the initial reaction might be funny but overall move should be Euro-negative. If they cut by more than expected, the market may take it as a very responsive move at after the initial price action it might be Euro-positive event.That would be all for Thursday.