The German Factory Orders report was released Thursday 08-06-09 at 6:00 AM ET. The next release is scheduled for Monday 09-07-09 at 8:00 AM ET.
I did a preview of these reports in an earlier post, click here to see.
Here are the results of the reports…
EUR German Factory Orders m/m
previous = 4.4%
forecast = 0.6%
actual = 4.5%
The “actual” came out higher than the “forecast” and higher than the “previous” report, giving the impression that the economy would improve for the EUR and that any currency pairs involving the EUR would move in favor of the EUR currency.
Did not happen – much to my disappointment.
Only two currency pairs showed any movement, the other 4 that I monitored, EUR/CHF, EUR/GBP, GBP/JPY and GBP/USD did not move enough to report.
Here are the two currency pairs that did move.
a one minute EUR/USD chart
Since I expected the EUR/USD currency pair to move up, I entered a trade as soon as my broker spread came back to normal, as you can see, just before the market reversed. I used a 20 PIP stop/loss order which was hit 11 minutes later.
I did something different this time, something I had not tried before, I traded the down turn after being “stopped” out – it paid off and I tried this technique during another report later when I had been “stopped” out, which also worked out well.
Anyway, this EUR/USD currency pair spiked up the 1st minute, then reversed down 35 PIPS in 14 minutes.
a one minute EUR/JPY chart
This EUR/JPY currency pair followed the same pattern as the EUR/USD pair, it spiked up the first minute and then reversed down 33 PIPS in 14 minutes.
Both of these currency pairs moved in the opposite direct I had expected.
The next release is scheduled for Monday 09-07-09 at 8:00 AM ET.
Stay tuned!
