10:00am NY Time US Existing Home Sales Forecast 5.95M Previous 6.54M
ACTION: USD/JPY BUY 6.35M SELL 5.55M
We’ll be trading the Existing Home Sales, and since Housing news is one of the more important news event out of the US, this news release will certainly cause some volatility especially if our tradable figures were hit. It is important to consider that if we get a better than expected release, USD could suffer somewhat from risk appetite sentiment as signs of housing recovery translate into equity gains; however, a worse release may boost USD demand as investors seek safe-haven shelter in U.S. Treasury. But the reaction of USD may be different against other pairs… for instance, a better release should be bearish for EUR/USD; a worse than expected release will be bad for USD/JPY…
Definition:
“Measures the annualized number of existing residential buildings that were sold during the previous month. A rising trend has a positive effect on the nation’s currency because large purchases tend to be made by consumers that are optimistic and confident in their financial position. The sale of a home also triggers commissions for real estate agents, and often home owners will purchase goods such as appliances and furniture shortly after purchasing a home. Traders watch this report closely as it’s the month’s first demand-side housing indicator to be released.”
Related posts:
- Forex Strategy For US Existing Home Sales 07/20/11
- Forex Analysis For US Existing Home Sales 09/21/11
- Forex News Trading US Existing Home Sales 06/21/11
- US New Home Sales Forex Trading Plan 10/27/10
- US New Home Sales m/m 11/25/09
- Forex News Trading US New Home Sales 02/24/11
- Forex News Trading US New Home Sales m/m 03/23/11
- Forex News Trading US New Home Sales m/m 04/25/11
- Forex Trade Signal For US New Home Sales 09/24/10
- Forex Trading Plan For US New Home Sales 08/25/10
{ 4 comments… read them below or add one }
any suggest about stop loss for USDJPY?
30 pips is usually the standard.
Hi Henry,
I love the website. I just have a small question: when should you close your position? How many pips do you usually expect the market to move when a news story is published? And how long should you hold your position? Should you close the position if the market has not moved your way within the first 5 minutes, or do you sit for 2 hours?
kind regards,
Chris
there is no one rule fits all. If you get to your SL then you are out, and if you get to your TP you are out too.
Always look at the context of the market for a reasonable TP/SL