147 pips Profit from the BOE Quarterly Inflation Report

On Feb. 11, I mad 147 pips of profit by selling gbpusd ahead of the Bank of England (BOE) Quarterly Inflation Report and may be more importantly the ILO Unemployment report. It was after nearly 5 percent drop in the U.S. equity indexes on rising skepticism about the Treasury's plan for fixing the financial system.

Jobless Claims rose by 73,800 in January, a little better than the estimates, and the unemployment rate climbed to 6.3 percent. Mervyn King, the BOE Governor, painted a very gloomy picture about the state of the U.K. economy in the coming months, saying that the MPC may start buying assets to print money even before the next meeting in March. However, the charts below might show that the news was mostly priced.