Last Friday 08-14-09 at 9:55 AM ET the University of Michigan released two monthly reports, Consumer Sentiment and Inflation Expectations.
These two reports do have an impact on the FOREX market when the “actual” comes out different from the “forecast” – Consumer Sentiment being the stronger of the two.
I did a “preview” of this report on Thursday 08-13-09, click here to review.
The stats were set up and results were as follows:
USD U. of Michigan Confidence Stats:
Previous = 66.0
Forecast = 68.6 revised = 69.1
Actual = 63.2
The difference between the “actual” and the “forecast” reports was down 5.30, and it did have some impact on the market. This report was bad for the USD.
Of the six currency pairs that I usually monitor for this news report, only two showed any real promise for good “scalp” trading and one looked good for trading.
I did trade one of them.
Keep in mind, some of the traders get the U of M reports at 9:55 AM ET and others do not get them until 10:00 AM ET – you can see how things went in the charts.
It seems that when some USD reports come out against the USD as this report did, two currency pairs move down big time – EUR/JPY and GBP/JPY.
The only currency pair that moved against the USD that I monitor was the USD/JPY, the EUR/USD, GBP/USD and USD/CAD all moved in favor of the USD.
I did a small trade on the currency pair EUR/JPY, here is the chart
a one minute EUR/JPY chart
At 9:55 AM ET some traders had received the reports and had entered the market, or, perhaps they were exiting the market, I cannot tell – anyway, the market moved down for 6 minutes about 50 PIPS, then ranged.
a one minute GBP/JPY) chart
As you can see in this GBP/JPY chart, the currency pair moved down about 80 PIPS in 21 minutes. This currency pair would have been very good for many “scalp” opportunities.
a one minute USD/JPY) chart
The USD/JPY moved against the USD, but not much, moved down about 20 PIPS in six minutes.
The next time this report will be released will be on Friday 09-11-09 at 9:55 AM ET.
Stay tuned!
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