GBPUSD

UK TRADE BALANCE

SUMMARY:
* Report: UK Trade Balance
* Sell on GBP/USD if the number will be -8.5 B or more nagative
* Buy on GBP/USD if the number will be -6.4 B or less negative
* If the trigger is hit, expect 25 to 35 pips or more in the first hour of the report

US INTEREST RATE STATEMENT

3. Tuesday, December 11th, 2007 (2:15 p.m. New York Time) USA
At 2.15 p.m. New York time we will have U.S. Interest Rate Statement. It is expected they will cut rates from 4.50% to 4.25%. The futures are pricing in about 20% chance they may cut rates by 50 bp to 4.00%. If they cut the rates to 4.00%, it would be a buy signal on GBP/USD causing some major dollar weakness, and we should see a move of 70 to 100 pips or more. If they keep the rates unchanged at 4.50%, that would be dollar-strengthening, and we should see GBP/USD going down by 70 to 100 pips or more. If they cut the rates to 4.25% then the market reaction is going to be highly dependent on the statement released by Bernanke, and that is subject to a lot of interpretations. They have been pretty hawkish after the last cut but nobody listened to them and GBP/USD gained. That's why it is tough to say how the market is going to react to such comments. Unless you are experienced, I would stay away from it.

SUMMARY:
* Report: US Interests Rate Statement
* Sell on GBP/USD if they keep it unchanged
* Buy on GBP/USD if they cut the rates to 4.00%
* NO TRADE if they cut to 4.25%