30 April 2008 - 19:38Trading Advice 4/30/08

I like USD/CHF short tonight but there is some big news due from the U.S. tomorrow which you have to watch out for. If you are still in the market when 8:30 am rolls around trying to ride the pair down further then put a stop in close to the market in case the inflation figures that the Fed says they pay the most attention to come out. If your broker widens the spread to make more money and hit stops during the news I suggest you find another one. Same goes for the one who fills your stops 30 pips away during the news. This report is likely to show inflation above 2% year on year which is supposed to be the most the Fed will tolerate so the dollar may gain on the figure. Also released at 8:30 are spending and income which are likely to be weak. Spending minus energy and food I would expect to decline but it is included in the headline number so the market may make a knee jerk reaction. Bottom line is don’t get caught with your pants down if it does. By 10 am it should be safe to be short the dollar again when ISM manufacturing is released and another below 50 reading is recorded.