The Fundamental FOREX Blog

Tomorrow, Monday 09-07-09 at 6:00 AM ET. The EUR – German Factory Orders MoM and YoY will be released.

The German Factory Orders reports are released on a monthly basis by Deutsche Bundesbank.

The last release was on Thursday 08-06-09 at 6:00 AM ET, click here to see the results of those reports.

I also posted a “preview” of those reports, click here for a review.

Due to the Labor Day holiday tomorrow, there probably will not be too much interest in the FOREX market, but, I will be watching just in case.

Let’s set this up, I focus mainly on the month-over-month Factory Orders:

EUR – German Factory Orders MoM stats:

Previous = 4.5%

Forecast = 2.0%

The “forecast” indicates that there is an expected decrease in German Factory Orders for last month – which is not real good for the European economy.

Last report release was way off the mark – the “forecast” had been for a decline in factory orders down to 0.2%, but the “actual” came out way better than expected, 4.5%, even higher than the “previous” of 4.4%. This should have been good for EUR currency.

Only 2 currency pairs had any action, the EUR/JPY and EUR/USD, and both currency pairs spiked up the 1st minute, which was in favor of the EUR, however, they moved down over the next 14 minutes. The EUR/JPY moved down 33 PIPS and the EUR/USD moved down 35 PIPS.

I was set up to trade the EUR/USD, when the spike up reversed, I executed a “buy” trade which came in a looser. Click here to see how things went.

I am going to set up much in the same way as I did last time, only this time I may trade against the “actual” report, the EUR/USD currency pair will be my choice to trade again.

I think the departure from the “forecast” is going to have to be big, maybe more than 5% either way. Only this time, I may trade against the “spike“.

Remember, “Past performances are not an indication of future results!”

Stay tuned!