Tomorrow, 08-26-09 at 10:00 AM ET, the USD New Home Sales and New Home Sales MoM will be released by the Census Bureau
The last time these reports were released was on Monday 07-27-09 at 10:00 AM ET.
The “actual” came out higher than the “forecast” 30,000 New Home Sales, and the currency market did react.
Here is what transpired:
USD – New Home Sales – Stats
Previous = 342K revised = 346K
Forecast = 354K revised = 353K
Actual = 384K 30K higher than “forecast”, good for the US economy.
Only the USD/JPY currency pair lacked any suitable trading movement.
Here are the charts – interesting first 3 minutes for each one – I wonder what the traders were waiting for.
a one minute USD/JPY chart
The USD/JPY moved up about 21 PIPS the first 3 minutes in the expected direction, then reversed and ranged.
a one minute EUR/USD chart
The EUR/USD moved up about 20 PIPS the first 3 minutes – then reversed in the expected direction about 58 PIPS in 35 minutes.
a one minute GBP/USD chart
The GBP/USD moved up about 24 PIPS the first 3 minutes – then reversed in the expected direction about 55 PIPS in 40 minutes.
a one minute USD/CADchart
The USD/CAD moved down about 28 PIPS the first 3 minutes – then reversed in the expected direction about 53 PIPS in 35 minutes.
Crosses:
a one minute GBP/JPYchart
The GBP/JPY moved up about 53 PIPS the first 3 minutes – then reversed in the expected direction about 75 PIPS in 40 minutes.
a one minute EUR/JPYchart
The EUR/JPY moved up about 46 PIPS the first 3 minutes – then reversed in the expected direction about 73 PIPS in 35 minutes.
As you can see, there were some good opportunities in all but one currency pair to “scalp” some PIPS.
Here is what is coming up tomorrow:
USD – New Home Sales – Stats
Previous = 384K
Forecast = 393K
It would stand to reason, perhaps, that if the New Home Sales report “actual” comes out 30K or more different from “forecast” that several currency pairs will move in the “expected” direction enough to “scalp” some PIPS – I will set up to trade one of the “crosses”, probably GBP/JPY.
Remember, what has happened in the past may not repeat itself under similar circumstances.
I will be writing a “follow up” post of these reports soon after.
Stay tuned!
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