Some of the Canadian news releases will move the market a little, one is the CAD – Building Permits – MoM report. On the 7th of July, 2009 at 8:30 AM ET, a report was released.
This report is released by the website Statistics Canada.
The economists figured it would come out at about +0.9%, a nice increase from the “previous” months report of a -5.4% – thus, projecting a nice improvement for the Canadian economy.
Here is what happened:
a one minute USD/CAD chart
#1. Here the market seems to prepare for the release of the report. My broker spread is at 4.5 PIPS and remains at that level until about 18 seconds prior to the scheduled release of the report when it increases to 10 PIPS.
#2. The market is moving at this point, apparently the report has been released.
About 9 seconds into the report I get the “actual” report of a +14.8% increase in Canadian building permits – nearly a full 14% more than “forecast“, very good for the Canadian economy.
About 39 seconds into the report, my broker spread returns to 4.5 PIPS.
#3. About 4 seconds after my broker spread drops, I execute my “sell USD/CAD market order”, assuming that the report would momentarily add to the value of the CAD.
I used a 20 PIP “stop/loss” just in case of an unexpected move in the opposite direction.
About 6 minutes later, I “covered” my trade with a “buy USD/CAD market order” and had a small win of 2.5 PIPS.
It took about 2 minutes to get the “revision report” of -4.5% of the “previous report” this was also an improvement for the Canadian economy.
The next release for this report will be on Thursday the 6th of August at 8:30 AM ET.
There were 2 other currency pairs that were moved a little by this report, EUR/CAD and CAD/JPY, however, minor!
A one minute EUR/CAD chart showing the EURO selling off after the Canadian Building Permits report
A one minute CAD/JPY chart showing the CAD being bought after the Canadian Building Permits report
Stay tuned!
