The Fundamental FOREX Blog

On Wednesday 11-09-09 at 8:15 AM ET, the CAD – Housing Starts report was released. This report is released monthly by CMHC – Canada Mortgage and Housing Corporation.

This report has not proved to have much impact on the FOREX currency market in the past, but this months report did move 2 of the currency pairs that I monitor – after some time.

I did a “preview” of this report on Sunday, 11-08-09, click here for a review.

I monitored 4 CAD involved currency pairs, CAD/JPY, EUR/CAD, GBP/CAD and USD/CAD – only two, GBP/CAD and USD/CAD, made a good showing about 16 minutes into the report release – they moved in the predicted direction and each could have yielded some good “scalping“ opportunities.

Here is how this report was set up and what the results were:

CAD – Housing Starts stats

Previous = 149K

Forecast = 157K

Actual = 157K

The “actual“ came out just as “forecast“ and 8k higher then the “previous”. Even though this report was not a “shock” to the market, eventually two of the currency pairs I watch did move nicely in the right direction.

Here is how the 2 of the currency pairs acted:

a one minute GBP/CAD chart

This GBP/CAD currency pair had a minor move down the 1st three minutes – then reversed up the about next 13 minutes about 22 PIPS – wrong direction – only then did the market move down for the next 42 minutes 95 PIPS – right direction .

a one minute USD/CAD chart

This USD/CAD currency pair had a minor move down the 1st three minutes – then reversed up the about next 13 minutes about 14 PIPS – wrong direction – then the market move down for the next 42 minutes about 77 PIPS – right direction.

Again, I had set up to do a trade on the currency pair USD/CAD, no “actual” and “forecast” difference – so no trade!

The next time this will be released will be on Thursday, 12-08-09 at 9:15 AM ET.

I will probably write a “preview” a day or two before the release.

Stay tuned!