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First let's talk about Wednesday.

At 5:30 a.m. we had BOE Minutes and the Average Earnings. The Earnings came out a little weaker but did not deviate by 0.2. The vote came out 7:2 so it was not that far away from the expectations either. The comments were a little mixed too but more towards pound weakness. The combination of these three elements sent GBP/USD down by 75 pips or so but I personally did not trade it at all.

Let's talk about tomorrow.

1. Thursday, March 20th, 2008 (5:30 a.m. New York Time) UK
At 5:30 a.m. we will have UK Retail Sales coming out. The y/y number is expected to come out at 3.6%, and m/m is expected to come out at -0.2%. I would use 0.4 trigger on the m/m indicator. If it comes out at -0.6% or lower (more negative), it would be a very good opportunity to short GBP/USD or GBB/JPY, looking for 40 and 60 pips, respectively. If it comes out at +0.2% or higher, I think it would be a good opportunity to go long on GBP/USD of GBP/JPY, for similar targets.

2. Thursday, March 20th, 2008 (8:30 a.m. New York Time) USA
At 8:30 a.m. we will have U.S. Initial Jobless Claims coming out. It is expected to come out at 360 K, and I would use 20 K trigger on this. If it comes out at 380 K or higher, it would be bad for the dollar and you can short USD/JPY; if it comes out at 340 K or lower, it would be good for the dollar and you can go long on USD/JPY. If the trigger is hit, I would expect about 35 pips of a price action.

3. Thursday, March 20th, 2008 (5:30 a.m. New York Time) USA
At 10 a.m. we will have Philadelphia Fed Manufacturing Index coming out. I would just skip that one.

That's all for tomorrow.

This Friday is Good Friday so there will be no trading opportunities.

Thank you and good luck with your trades.

To Our Success!
-Sir Pipsalot