The Fundamental FOREX Blog

Tomorrow, Monday, 01-11-10 at 8:15 AM ET, the CAD – Housing Starts report will be released. This report is released monthly by CMHC – Canada Mortgage and Housing Corporation.

I wrote a “follow up” post for last months housing starts report, click here for a review.

Last month the “actual” report came out higher then “forecast”, which was good for the Canadian economy, and higher then the “previous”  monthly report, but not enough to trade.

Check out the “follow up” link above for an idea what was going on.

I did not enter a trade last month since I was looking for a greater difference between the “actual” and the “forecast”, I was looking for at least 20K.

Here is what is happening on Monday, 01-11-10:

CAD – Housing Starts stats

Previous = 159K

Forecast = 161K

This looks like the CHMC believes that the Canadian housing starts will show a increase this time.

Best be aware – the CAD – BOC Business Outlook Survey is being released at 9:00 AM ET, the traders may wait for this report before trading.

Here is how I am set up for tomorrow:

CAD-6-15AM-01-11-10
Looking for a 20K difference
Actual > Forecast = Good for CAD
CAD Housing Starts
——actual———-forecast———-previous
________________161K________159K
Out at 181K or higher SELL GBP/CAD
Out at 141K or lower BUY GBP/CAD

I did write a “follow up” post soon after this report is finished, click here to see what happened.

The next time this will be released will be on Tuesday, 02-09-10 at 8:15 AM ET.

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

Stay tuned!