Core Retail Sales is another high impact release from Canada today, and with the Core CPI being released just about 90 minutes earlier, it’s important to take the context of the market into consideration before planning for this trade. If we are trading at a support level on a better than expected CPI release, it is possible that market may not move much from this news even if our tradable deviation is hit… With that said, let’s look at the forecast for this news:
8:30am NY Time Core Retail Sales Forecast 0.7% Previous 1.8%
ACTION: USD/CAD BUY 0.0% SELL 1.3%
We’ll be focusing on the Canadian Core Retail Sales release and not the headline Retail Sales release; Core Retail Sales release is a month on month release, and basically it’s a measurement of the activities at the retail level of Canada, but excluding most volatile components, Automotive Components, which makes up about 25% of the Headline Retail Sales release, and it varies seasonly. A better release generally means more consumer spending, which leads to better economy, thus better for its currency. And the CORE reading provides a far more accurate look of the actual economy.
I’m going to be looking for a minimum deviation of 0.6% for this release. Therefore if we get a 0.0% or worse, it would be negative for the CAD and we’ll be looking to BUY USD/CAD; however, if the opposite is true, or a 1.3% of actual release, I’ll be looking to SELL USD/CAD.
Related posts:
- US Core Retail Sales m/m 11/16/09
- US Core Retail Sales m/m 10/14/09
- US Core Retail Sales m/m 12/11/09
- US Core Retail Sales m/m 09/15/09
- Forex Strategy for UK Retail Sales 08/18/11
- UK Retail Sales m/m 10/22/09
- Forex News Trading Plan For NZ Retail Sales 01/20/11
- Forex Trade Plan For NZ Retail Sales m/m 07/13/10
- UK Retail Sales m/m 02/19/2010
- UK Retail Sales m/m 01/22/10
