On Wednesday, 10-28-09 at 10:00 AM ET, the USD New Home Sales and New Home Sales MoM reports were released by the Census Bureau
I did a “preview” of these reports on Tuesday, 10-27-09 at 10:00 AM ET, click here for a review.
The following is a quote from the FOREX Factory website Calendar:
“Actual > Forecast = Good for currency (Note: While this is the ‘usual’ effect, under current market conditions the reverse tends to be true against some currencies, as bad data has been triggering the purchase of US bonds);”
Here is what happened:
USD – New Home Sales – Stats
Previous = 429K revised = 417K
Forecast = 443K
Actual = 402K
Bad – lower then the “forecast” by 41K, lower then the “previous by 27K and lower then the revised “previous” by 15K.
USD – New Home Sales MoM – Stats
Previous = 0.7% revised = 1.0%K
Forecast = 2.6%
Actual = -3.6%
Bad – lower then “forecast” by 6.2%, lower then “previous” by 4.3% and lower then revised “previous” by 4.6%.
Both of these reports are not looking very good for the US economy and certainly not good for the strength of the USD – as reflected in the currency market.
Here are the charts.
a one minute EUR/JPY chart
The EURJPY currency pair moved down the first 4 minutes about 36 PIPS – then reversed up the next 22 minutes about 30 PIPS.
a one minute EUR/USD chart
The EUR/USD currency pair moved down the first 5 minutes about 28 PIPS – this was in the wrong direction – but then reversed up the next 23 minutes about 30 PIPS – this was in the correct direction.
I entered two small “scalp” trades and both were winners.
a one minute GBP/JPY chart
The GBP/JPY currency pair moved down the first 5 minutes about 43 PIPS – then reversed up the next 22 minutes about 50 PIPS.
a one minute GBP/USD chart
The GBP/USD currency pair moved down the first 5 minutes about 35 PIPS – this was in the wrong direction – but then reversed up the next 22 minutes about 48 PIPS – this was in the correct direction.
a one minute USD/CAD chart
The USD/CAD currency pair moved up the first 6 minutes about 31 PIPS – this was in the wrong direction – but then reversed down the next 7 minutes about 34 PIPS – this was in the correct direction.
a one minute USD/JPY chart
The USD/JPY currency pair moved down the first 5 minutes about 8 PIPS – this was in the correct direction – then reversed up the next 8 minutes about 9 PIPS. – this was in the wrong direction.
The next schedule release of these reports will be on Wednesday, 11-25-09 at 11:00 AM ET.
I will probably post a “preview” a day or two prior.
Stay tuned!
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