The Fundamental FOREX Blog

Tomorrow, Wednesday, 11-25-09 at 10:00 AM ET, the USD New Home Sales and USD New Home Sales MoM monthly reports will be released by the Census Bureau.

The last time these reports were released was on Wednesday, 10-28-09 at 10:00 AM ET.

I did a “follow up” of these reports on Friday, 10-30-09, click here for a review.

Here is what is coming up tomorrow:

USD – New Home Sales – Stats

Previous = 402K

Forecast = 408K

USD – New Home Sales MoM – Stats

Previous = -3.6%

Forecast = 0.8%

Last month the “actual” New Homes Sales came out 41K lower then the “forecast” and 27K lower then the “previous“, which was not good for the USD.

It appeared that all of the USD currency pairs I watch moved in the wrong direction for about 5 minutes after report release.

Except the USD/JPY pair which moved in the right direction the first 5 minutes (small move), after 5 minutes the others then moved well in the right direction.

Click here for a review:

I did a trade of the EUR/USD last time and had two winning “scalps“, but the currency pair GBP/USD had a much better showing, so….I think I will set up to trade the GBP/USD this time.

I will use a 30K difference of the “actual” above or below the “forecast” as the point to enter my trade. I also keep and eye on the MoM report – hope it goes in the same direction.

There is a note in the FOREX Factory Calendar concerning these reports:

“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);”

Remember, what has happened in the past may not repeat itself under similar circumstances.

I did write a “follow up” post of these reports, click here to see what happened.

The next scheduled report is on Wednesday 12-23-09 at 11:00 AM ET.

I will probably post a “preview” a day or two prior.

Stay tuned!