The Fundamental FOREX Blog

On Monday, 03-01-10 at 10:00 AM ET the USD ISM Manufacturing PMI report was released along with two other reports.

USD ISM Prices Paid
USD Construction Spending (MoM)

USD ISM Manufacturing PMI has the greatest impact on the currency markets.

The USD ISM Manufacturing PMI is released by the Institute of Supply Management
and is released monthly,

and the Construction Spending is released by the Census Bureau and is released monthly.

I did a “preview” post for this month, click here for a review.

Here is the set up for this month:

USD ISM Manufacturing PMI stats:

Previous = 58.4

Forecast = 57.9

Actual = 56.5

Even though the “actual“ was not great enough of a difference over the “forecast”, I did execute a small trade! Check the charts.

Here is how I was set up and what happened:

USD-8-00AM-03-01-10
Looking for a Change of 2 to 3
Actual >  Forecast = Good for USD
USD ISM Manufacturing PMI
——actual———-forecast———-previous
_____56.5_______57.9_________58.4
out at 59.9 or higher – BUY USD/JPY
out at 55.9 or lower – SELL USD/JPY
Bad – “actual” came out lower then “forecast” by 1.4
Bad – “actual” came out lower then “previous” by 1.9

Here are the charts:

(EUR/JPY)

a one minute EUR/JPY chart

This currency pair EUR/JPY moved down 1st 4 minutes about 20 PIPS
Move up next 10 minutes about 40 PIPS
Move down next 17 minutes about 60 PIPS

(EUR/USD)

a one minute EUR/USD chart

This currency pair EUR/USD moved up for 14 minutes about 28 PIPS – right direction
Move down next 19 minutes about 70 PIPS – wrong direction

(GBP/JPY)

a one minute GBP/JPY chart

This currency pair GBP/JPY ranged for 4 minutes
moved up for 8 minutes about 40 PIPS
Move down next 19 minutes about 50 PIPS

(GBP/USD)

a one minute GBP/USD chart

This currency pair GBP/USD moved up for 7 minutes about 25 PIPS – right direction
Ranged for 6 minutes
Move down next 18 minutes about 60 PIPS – wrong direction

(USD/CAD)

a one minute USD/CAD chart

This currency pair USD/CAD moved down for 14 minutes about 45 PIPS – right direction
Move up next 19 minutes about 30 PIPS – wrong direction

(USD/JPY)

a one minute USD/JPY chart

This currency pair USD/JPY moved down for 4 minutes about 20 PIPS - right direction
Move up next 52 minutes about 41 PIPS – wrong direction
Executed a small winning trade!

The next scheduled release of  this combination of reports will be on Monday, 04-01-10 at 9:00 AM ET.

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

Stay tuned!