The Fundamental FOREX Blog

On Thursday 10-16-09 at 7:00 AM ET, the CAD – Core Consumer Price Index MoM and Consumer Price Index MoM were released along with 2 other Canadian economic reports .

They were:

CAD Bank Consumer Price Index Core MoM
CAD Bank Consumer Price Index Core YoY

Originally I believed that the Core Consumer Price Index MoM had the greatest impact on the FOREX market, but the currency traders felt differently this day.

It seems that the non core consumer price index had a much greater impact.

I did a “preview” of these economic news releases on Thursday, 10-15-09, click here for a review.

All 4 reports are released by Statistics Canada.

Let‘s see what happened:

CAD Core Consumer Price Index (MoM) Stats

previous = 0.1%

forecast = 0.2%

actual = 0.3%
Good – higher by 0.1% then the “forecast” and higher by 0.2% then the “previous”

CAD Consumer Price Index (MoM) Stats

previous = 0.0%

forecast = 0.1%

actual = 0.0%
Bad – lower by 0.1% then the “forecast” and the same as the “previous”

Here are the Charts:

a one minute CAD/JPY chart

This CAD/JPY currency pair spiked up about 15 PIPS and retraced down about 49 PIPS the 1st minute – then it moved down from the time that the report was released about 55 PIPS in 15 minutes.

Since the non-core CPI came out bad for the CAD – this move would have been in the right direction.

a one minute EUR/CAD chart

This EUR/CAD currency pair spiked down about 27 PIPS and retraced up about 83 PIPS the 1st minute – then it moved up from the time that the report was released about 89 PIPS in 15 minutes.

Again, since the non-core CPI came out bad for the CAD – this move would have been in the right direction.

a one minute GBP/CAD chart

This GBP/CAD currency pair spiked down about 23 PIPS and retraced up about 92 PIPS the 1st minute – then it moved up from the time that the report was released about 155 PIPS in 33 minutes.

Again, since the non-core CPI came out bad for the CAD – this move would have been in the right direction.

a one minute USD/CAD chart

This USD/CAD currency pair spiked down about 16 PIPS and retraced up about 62 PIPS the 1st minute – then it moved up from the time that the report was released about 78 PIPS in 33 minutes.

Again, since the non-core CPI came out bad for the CAD – this move would have been in the right direction.

The next release of this report is scheduled for Monday, 11-23-09 at 8:00 AM ET.

I have noticed lately that pre-scheduled economic news releases are sometimes re-scheduled later on.

I will probably post a “preview” of this report a day prior.

Stay tuned!