On Wednesday, 08-26-09 at 10:00 AM ET, the USD New Home Sales and New Home Sales MoM were released by the Census Bureau
I did a “preview” of these reports on Tuesday 08-25-09 at 10:00 AM ET, click here for a review.
There are times when a news report or reports come out that give a strong indication of how a currency market should move, but for some reason, it did the opposite – I am sure that you “tech” traders have suffered through that event a few times in your trading experiences. Well, it happened this time.
Here is what happened:
USD – New Home Sales – Stats
Previous = 384K revised = 395K
Forecast = 393K not revised
Actual = 433K 40K higher than “forecast”, and good for the US economy.
None of the currency pairs acted as one would think in view of how the reports came out.
Here are the charts.
a one minute USD/JPY chart
The USD/JPY spiked up first 2 minutes about 15 PIPS – retraced 2nd minute and continued down about 21 PIPS in 4 minutes, then ranged. Not expected!
a one minute EUR/USD chart
The EUR/USD moved up about 25 PIPS in 24 minutes. Not expected!
a one minute GBP/USD chart
The GBP/USD moved up about 40 PIPS in 17 minutes. Not expected!
a one minute USD/CAD chart
The USD/CAD moved down about 35 PIPS in 17 minutes. Not expected!
Crosses
a one minute GBP/JPY chart
The GBP/JPY spiked up first 2 minutes about 35 PIPS – retraced 2nd minute and continued down about 50 PIPS in 4 minutes – wrong direction – reversed up about 64 PIPS in 13 minutes . Right direction!
I traded this currency pair and lost the first trade, but made 3 more “scalp” trades to recover some losses.
a one minute EUR/JPY chart
The EUR/JPY spiked up first 2 minutes about 30 PIPS – retraced 2nd minute and continued down about 40 PIPS – then ranged. Not expected!
The next schedule release of these reports will be on Friday 09-25-09 at 10:00 AM ET.
Stay tuned!
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