Canada Core CPI m/m 02/18/2010

7:00am (NY Time) CA Core CPI m/m   Forecast 0.1%   Previous -0.3%
ACTION: USD/CAD          BUY -0.2%       SELL 0.4%

We will be focusing on the Core CPI release from Canada and our deviation for this release based on historical track record is 0.3%, therefore I’ll be looking for tradable figures of 0.4% or better to SELL USD/CAD or a -0.2% or worse to BUY USD/CAD. 

USD/CAD has been consolidating over recent gains and it is diverging from other major currencies versus the USD.  As most European currencies are trading at their support levels against USD, CAD has been showing exceptional strength, but it is my opinion that USD may gain significantly against CAD if we get anything less than an upward surprise in this release.   If we were to look at correlation historically, we could expect an upward breakout on the USD/CAD pair soon following the collapse of both EUR/USD and GBP/USD recently.

DEFINITION:

“CPI, Consumer Price Index, is a statistical estimate of the movement of the prices of goods and services bought for consumption purposes by households. Its computation uses price data collected for a sample of goods and services from a sample of sales outlets in a sample of locations for a sample of times and estimates of the shares of the different expenditures in the total covered by the index which are usually based upon expenditure data obtained for sampled periods from a sample of households(wikipedia).”  It is also known as the “True Cost of Living”.

Related posts:

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2. Canada Core CPI m/m 11/18/09
3. Canada Core CPI m/m 10/16/09
4. Canada Core CPI m/m 12/17/09
5. Forex Trading Plan For Canada Core CPI m/m 06/22/10
6. Trading Canada Core CPI 04/23/10…
7. Canadian Core CPI Trading Plan 05/21/10
8. Canada Core CPI m/m 09/17/09
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10. US Core CPI m/m 11/18/09