7:00am (NY Time) CA Core CPI m/m Forecast 0.3% Previous 0.1%
ACTION: USD/CAD BUY 0.0% SELL 0.6%
We will be trading Canadian Core CPI release today and our deviation for this release based on historical track record is 0.3%, therefore I’ll be looking for tradable figures of 0.6% or better to SELL USD/CAD or a 0.0% or worse to BUY USD/CAD.
USD/CAD has been gaining on the back of a weaker USD and stronger commodity prices. With Crude Oil trading now above 81.00 per barrel and analysts are forecasting a possible 100 to 110 by the end of 2010, Canada’s inflation should be somewhat elevated… However, with recent strength in CAD and the possibilities at trading around parity with USD, we may see both technical and psychological bounce shortly. Long term CAD trend is not likely to remain at or below parity, therefore we may be looking at a good entry to go long on USD/CAD.
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:
- Canada Core CPI m/m 02/18/2010
- Canada Core CPI m/m 10/16/09
- Trading Canada Core CPI 04/23/10…
- Forex Trading Plan For Canada Core CPI m/m 06/22/10
- Canada Core CPI m/m 11/18/09
- Canada Core CPI m/m 12/17/09
- Forex News Trading Canada Core CPI m/m 10/22/10
- Forex News Trading Canada Core CPI m/m 11/23/10
- Forex Trade Plan For Canada Core CPI m/m 09/21/10
- Canadian Core CPI Trading Plan 05/21/10
