Hi there 
This is Crazy Cat, with the review of the week.
This week, we were watching 6 economic indicators. 1 of them hit the triggers that I sent to you. Let's review...
1. Monday, March 01st (08:30 New York time) CANADA
I said if Canadian GDP m/m comes out at 0.6 or higher, USD/USD will probably go down by 30 pips or more in the first 45 minutes of the report.
It actually came out at 0.6 and USD/CAD actually moved by 60 pips. I am really surprised it moved so much.
Here is the chart:
Forex news trading currency exchange charts
2. Monday, March 01st (19:30 New York time) AUSTRALIA
Australian Retail Sales
This is really interesting. When I wrote the signal, it was expected to come out at 1.0, then right before the reports that estimate went down to as low as 0.5, and then the actual number came out at 1.2. From 0.5 to 1.2, it's a tradable deviation but since people originally expected it to come out 1.0, the move itself could be muted. Also, we've got negative revision and a conflict with Building Approvals. I actually traded it on the spike and when I saw such muted spike, I exited immediately and I actually grabbed a few pips profit. But I was lucky, and I know a lot of people did not make it. Well, things like this happen although still it was profitable to me.
Here is what happened:
Forex news trading currency exchange charts
3. Monday, March 01st (22:30 New York time) AUSTRALIA
Australian Interest Rates
They did in fact hike the rates to 4.00% but because about 30% of economists did expect them to keep the rates at 3.75% level, we saw a spike up. When things like this happen, I try to trade with smaller positions and be ready to exit quickly, and that's what I did. I actually got only one fill but still grabbed instant 25 pips on the spike on AUD/USD. I must admit, however, this was not an easy trade.
Here is the chart:
Forex news trading currency exchange charts
4. Wednesday, March 03rd (04:28 New York time) UK
UK Services PMI
I said it it comes out at 56.0 or more, GBP/USD would probably go up by 35 pips. It actually came out at 58.4 so it was really big deviation, and GBP/USD went up by about 60 pips. It was a nice trade because it gave an opportunity to enter after the spike as well. I got no fill on the spike but I know some people successfully traded the afterspike strategy.
Here is the chart:
Forex news trading currency exchange charts
5. Wednesday, March 03rd (10:00 New York time) USA
US ISM Non-Manufacturing
I said if it comes out at 53, USD/JPY would probably go up by 20 pips. It came out at exactly 53 but USD/JPY came up by about 15 pips or so. It's still very crappy indicator to trade but at least you should not lose a lot of money on this report as within first 10 minutes it was well above the prerelease price with a very random price action. So you either lost a few pips or made a few pips, not a big deal.
I decided not trade the spike on this report so it was a no trade for me. If I traded the spike, I would probably grab a few pips but it was conflicting with my schedule so I did not trade it.
Here is the chart:
Forex news trading currency exchange charts
It was a strange week with a few surprises (e.g. Canadian GDP or even Canadian IVEY), a few disappointments (e.g. Australian Retail Sales), a few fast entry/exit trades (e.g. Australian Interest Rates) and a few slow movers like US ISM Non-Manufacturing. I am overall profitable for this week although it was not a huge week for me. I hope you made a few pips as well.
Anyway, have a good Sunday!
--Crazy Cat
This is Crazy Cat, with the review of the week.
This week, we were watching 6 economic indicators. 1 of them hit the triggers that I sent to you. Let's review...
1. Monday, March 01st (08:30 New York time) CANADA
I said if Canadian GDP m/m comes out at 0.6 or higher, USD/USD will probably go down by 30 pips or more in the first 45 minutes of the report.
It actually came out at 0.6 and USD/CAD actually moved by 60 pips. I am really surprised it moved so much.
Here is the chart:
Forex news trading currency exchange charts
2. Monday, March 01st (19:30 New York time) AUSTRALIA
Australian Retail Sales
This is really interesting. When I wrote the signal, it was expected to come out at 1.0, then right before the reports that estimate went down to as low as 0.5, and then the actual number came out at 1.2. From 0.5 to 1.2, it's a tradable deviation but since people originally expected it to come out 1.0, the move itself could be muted. Also, we've got negative revision and a conflict with Building Approvals. I actually traded it on the spike and when I saw such muted spike, I exited immediately and I actually grabbed a few pips profit. But I was lucky, and I know a lot of people did not make it. Well, things like this happen although still it was profitable to me.
Here is what happened:
Forex news trading currency exchange charts
3. Monday, March 01st (22:30 New York time) AUSTRALIA
Australian Interest Rates
They did in fact hike the rates to 4.00% but because about 30% of economists did expect them to keep the rates at 3.75% level, we saw a spike up. When things like this happen, I try to trade with smaller positions and be ready to exit quickly, and that's what I did. I actually got only one fill but still grabbed instant 25 pips on the spike on AUD/USD. I must admit, however, this was not an easy trade.
Here is the chart:
Forex news trading currency exchange charts
4. Wednesday, March 03rd (04:28 New York time) UK
UK Services PMI
I said it it comes out at 56.0 or more, GBP/USD would probably go up by 35 pips. It actually came out at 58.4 so it was really big deviation, and GBP/USD went up by about 60 pips. It was a nice trade because it gave an opportunity to enter after the spike as well. I got no fill on the spike but I know some people successfully traded the afterspike strategy.
Here is the chart:
Forex news trading currency exchange charts
5. Wednesday, March 03rd (10:00 New York time) USA
US ISM Non-Manufacturing
I said if it comes out at 53, USD/JPY would probably go up by 20 pips. It came out at exactly 53 but USD/JPY came up by about 15 pips or so. It's still very crappy indicator to trade but at least you should not lose a lot of money on this report as within first 10 minutes it was well above the prerelease price with a very random price action. So you either lost a few pips or made a few pips, not a big deal.
I decided not trade the spike on this report so it was a no trade for me. If I traded the spike, I would probably grab a few pips but it was conflicting with my schedule so I did not trade it.
Here is the chart:
Forex news trading currency exchange charts
It was a strange week with a few surprises (e.g. Canadian GDP or even Canadian IVEY), a few disappointments (e.g. Australian Retail Sales), a few fast entry/exit trades (e.g. Australian Interest Rates) and a few slow movers like US ISM Non-Manufacturing. I am overall profitable for this week although it was not a huge week for me. I hope you made a few pips as well.
Anyway, have a good Sunday!
--Crazy Cat
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