After the FOMC's announcement last nite to increase QE another 600 Billion, the major pairs (EURUSD, GBPUSD, AUDUSD) had retraced some of their gains. Prices had mostly consolidated below the FOMC spike high during the asian session and as Europe opened for trading price was near the lows of this mini-range, with EURUSD just above 1.41 and GBPUSD just above 1.61. The Halifax House Prices index for October had been on the schedule for tuesday, but it is one of these reports where the date and time of the release is not set in stone.
Having had a long day yesterday with so much news, this news really was not on the radar, and there is not much reliable past history to be totally sure about it. Regardless the number did come out higher and the pound responded instantly with a move of 20 pips in the first minute. Here are the numbers:
*(UK) OCT HALIFAX HOUSE PRICES M/M: 1.8% V 0.6%E; 3M/Y: 1.2% V 0.8%E
- Prior MoM revised lower from -3.6% to -3.7%
This release coincided with the London open and initiated a further USD sell-off against the majors, with EURUSD following the move up in GBPUSD in the next minute, and broke out of the consolidation range cut out during asia of 1.4105-1.4140. Prices shot up above the 1.42 handle without any decent pullback. However after consolidating above 1.42 for half an hour in the ProfitMongers Live Forex News Trading Room a trade was given to go long. Some 45 minutes later our target was hit near the big quarter penny at 1.4250 for 35 pips.
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