The Fundamental FOREX Blog

On Monday 08-24-09 at 8:30 AM ET, two Canadian reports were released

CAD Retails Sales MoM
CAD Core Retail Sales MoM

I posted a “preview” of these reports on Sunday 08-23-09, click here for a review.

Also, I have written two “results” post prior to this “preview” report, the last one on 07-24-09, click here for a review.

And the one before that on 06-22-09, click here for a review.

By checking out both “reviews” above you will get an idea of how these reports affect the currency markets.

Canada’s “Statistics Canada”  release their monthly report of  “Core Retail Sales” M/M which  excludes the sale of autos, and “Retails Sales” M/M which represents total consumer spending. These 2 reports come out about 50 days after the months end.

It appears that the “Retail Sales” report has a little more impact for traders than the “Core Retail Sales“.

Here is the set up for the “Retail Sales” reports:

CAD – Retail Sales MoM – stats

Previous = 1.2% revised = 1.1%

Forecast = 0.0%

Actual = 1.0%

1.0% is above the “forecast”, which was contrary, and therefore a  surprise to the traders – and the currency market did move in favor of the CAD

CAD – Core Retail Sales MoM – stats

Previous = 0.7% revised = 0.6%

Forecast = 0.2%

Actual = 1.0%

Both reports came out in the same direction and are greater than the “forecast”, and did move in favor of the CAD.

I originally set up to trade the USD/CAD, but changed my mind after I went back into my records on these reports. I decided to trade the currency pair GBP/CAD, which was a short “scalp” win for me, but better yet, the currency pair had the best moves of the six pairs I monitor – see my charts below.

The 4 currency pairs that involved the CAD that I monitor moved in the “expected” direction, the two currency pairs – EUR/USD and GBP/USD really had very little action.

a one minute GBP/CAD chart

This GBP/CAD currency pair moved down about 93 PIPS in 52 minutes – expected! Had a “scalp” win.

a one minute EUR/CAD chart

This EUR/CAD currency pair moved down about 63 PIPS in 40 minutes – expected!

a one minute CAD/JPYchart

This CAD/JPY currency pair moved down about 52 PIPS in 42 minutes – expected!

a one minute USD/CAD chart

This USD/CAD currency pair moved down about 50 PIPS in 40 minutes – expected!

The next release for these 2 reports will be Tuesday 09-22-09 at 8:30AM ET.

Stay tuned!