The Fundamental FOREX Blog

On Thursday 09-24-09 at 10:00 AM ET 2 USD reports were released, they were the Existing Home Sales for August and the MoM reports by the National Association of Realtors.

Probably the most important report of the 2 is the “Existing Home Sales for August”.

I was set up to trade the currency pair USD/JPY, which I did and monitored 5 other currency pairs – GBP/USD, USD/JPY, USD/CAD, EUR/JPY, and GBP/JPY.

I did a “previous” post on Wednesday, 09-23-09, click here for a review.

Here are the stats for  USD Existing Home Sales  for August and the results:

Previous = 5.24 M

Forecast = 5.36 M

Actual = 5.10 M

This “forecast” indicated that there would be an increase in home sales of about 120,000 homes sold over the August sales, but, the “actual“ came out 140,000 less homes sold over last month, and 260,000 less than “forecast“. This should have reflected “bad” for the US economy and the USD should have suffered.

The G-20 meetings were going that day – did it have any affect on the money markets? I do not know.

Anyway, the money markets seemed to not pay any attention to the housing reports.

Only one currency pair, GBP/JPY, had any tradable moves.

I did trade the USD/JPY currency pair expecting it to move against the USD – did not happen – I did 4 trades, first two were losers, and the second two were for a recoup of my losses, which was not enough to equal the loses.

Let’s take a look at the charts and see how things worked out:

First, my trade of the USD/JPY chart – not a pretty sight.

a one minute USD/JPY chart

This USD/JPY currency pair should have moved against the USD – well, so I thought, as you can see it upset my day.

a one minute GBP/JPY chart

This GBP/JPY currency pair did move after its initial spike down the 1st minute and a spike range for 4 minutes – then it moved down about 33 PIPS in 15 minutes..

The next scheduled release of this report will be Friday 10-23-09 at 10:00 AM ET. At this point in time the Existing Home Sales reports are stand alone, a month is a long time, rescheduling can occur any time.

I will probably be writing a preview post for this report.

So, stay tuned!