The Fundamental FOREX Blog

The USD Pending Home Sales MoM and Pending Home sales Index YoY was released, Tuesday, 02-02-10 at 10:00 AM ET.

These 2 news releases were stand alone this month.

The USD – Pending Home Sales MoM has the strongest influence on the market.

I did a “preview” post for this month on Monday, 02-01-10, click here for a review.

These two reports are released by the National Association of Realtors on a monthly basis, and can have a strong affect on the FOREX market.

Here is what what happened:

USD Pending Home Sales m/m stats:

Previous = -16.0%

Forecast = 0.4%

Actual = 1.0%

The “forecast” looks like the economists believe the housing economy is heating up.

USD Pending Home Sales YoY stats:

Previous = 19.3%

Forecast = ?????

Actual = 10.5%

Here is how I was set up and what happened:

USD-8-00AM-02-02-10
Looking for a 5.0% difference
Actual > Forecast = Good for USD
USD Pending Home Sales m/m
——actual———-forecast———-previous
________________0.4%________-16.0%
_____1.0%_______ 0.4%_______ -16.4%
out at 5.4% or higher – SELL EUR/JPY
out at -4.6% or lower – BUY EUR/JPY
Good – “actual” came out higher then “forecast” by 0.6%
Good – “actual” came out higher then “previous” by 17.0%
Good – “actual” came out higher then revised “previous” by 17.4%

But, the “actual” did not come out high enough for me to venture a trade!

Here are the charts:

a one minute EUR/JPY chart

The EUR/JPY currency pair moved down for 12 minutes about 17 PIPS
Moved up the next 26 minutes about 41 PIPS

a one minute EUR/USD chart

This EUR/USD currency pair moved down for 13 minutes about 28 PIPS – right direction
Moved up the next 22 minutes about 42 PIPS – wrong direction

a one minute GBP/JPY chart

This GBP/JPY currency pair moved down for 10 minutes about 23 PIPS
Moved up the next 28 minutes about 60 PIPS

a one minute GBP/USD chart

This GBP/USD currency pair moved down for 13 minutes about 30 PIPS – right direction
Moved up the next 22 minutes about 63 PIPS – wrong direction

a one minute USD/CAD chart

This USD/CAD currency pair moved up for 9 minutes about 22 PIPS - right direction
Moved down the next 27 minutes about 34 PIPS – wrong direction

a one minute USD/JPY chart

This USD/JPY currency pair moved up/down 1st minute about 4 PIPS/ 9 PIPS
Moved up the next 16 minutes about 19 PIPS – right direction

The next reports are schedule for Thursday, 03-04-10 at 10:00 AM ET.

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

Stay tuned!