Canada Retail Sales

Measures the monthly change in total value of sales at the retail level. A rising trend indicates higher consumer spending, which is an important driver of the economy.

Pair: USD/CAD
Bias: Short
Result: No Trade
Max Spread: 15pips

The figures came out a couple of minutes late, despite the market moving down sharply at 0830 prompt. Overall, the market didn’t move a great deal. There was a technical glitch also on Mark’s systems.

US FOMC

The Federal Open Market Committee (FOMC) Interest Rate Statement is released shortly after a meeting in which the FOMC, headed by Ben Bernanke, makes a decision on where to set the federal funds target rate. The statement is released eight times per year and contains the latest rate decision, along with commentary on the state of the economy and how the FOMC intends to shift monetary policy in the future. The FOMC focuses heavily on inflation, as their stated mission is to achieve price stability. They generally raise rates to fight inflation, and lower rates in the face of deflation or economic slowdown.

Result: No trade
Pair: GBP/USD
Bias: Long

Some very choppy action after that release, which is a common pattern for the FOMC events. Any news straddlers will have got slaughtered. I’m glad I didn’t get into that one.

USA PPI and Housing Starts

The Producer Price Index (PPI) measures the rate of inflation experienced by manufacturers. The reading represents the monthly change in the average price of a fixed basket of goods and services purchased by manufacturers. Higher inflation generally leads to higher interest rates, which tend to strengthen the country’s currency.

US Housing Starts measures the number of new single-family homes or buildings constructed throughout the previous month. Another sharp decline would risk a sharp deterioation in dollar confidence.

Max Spread: 11
Bias: Long

Pair: GBP/USD
Result: Buy, buy, buy!

Wow, that was an awesome trade. 61 pips. The trade did require to be held for a while though, and with Mark’s guidance in the chatroom I held my position. Great trade.

Canada CPI

The Consumer Price Index (CPI) measures the rate of inflation experienced by consumers. The reading represents the monthly change in the average price of a fixed basket of goods and services purchased by consumers. Higher inflation generally leads to higher interest rates, which tend to strengthen the country’s currency.

Pair: USD/CAD
Result: No trade

I missed this trade as my MacBook died and I had to take it to the repair centre and I was setting up my backup PC. Moral of the story: make sure your backup machines are working and test them regularly, then you won’t miss trades. Luckily (for me), this one didn’t take off. There was an interesting surge and collapse in price an hour and a half after the news release though. If you know what that was all about please contact me.