8:30am (NY Time) US Core CPI m/m Forecast 0.1% Previous 0.0%
ACTION: USD/JPY BUY 0.3% SELL -0.1%
We’ll be focusing on the Core CPI release today and our minimum tradable deviation is 0.2%; if the release number (core) increases to a minimum 0.3% then we will BUY USD (either SELL EUR/USD or BUY USD/JPY). If the CPI number decreases to -0.1% or less, we’ll SELL USD (BUY EUR/USD or SELL USD/JPY). Historically even at a difference of 0.1%, market is likely to exaggerate its move, therefore if either of our tradable releases is hit, there is about 80% of chance market will move 50 pips.
With the PPI release on Wednesday coming out better than expectation (PPI -0.3% v -0.5%e) as attributed to higher energy cost, we may see a stronger headline CPI figure, which may conflict with the Core CPI if the core release is negative… therefore, make sure only to trade when both releases are going in the same direction
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:
- US Core CPI m/m 11/18/09
- US CPI m/m 10/15/09
- US Core CPI m/m 09/16/09
- Canada Core CPI m/m 10/16/09
- Canada Core CPI m/m 11/18/09
- Forex News Trading Canada Core CPI m/m 11/23/10
- Forex News Trading Canada Core CPI m/m 10/22/10
- Forex Trade Plan For Canada Core CPI m/m 09/21/10
- Forex News Trading Plan For CA Core CPI m/m 01/25/11
- Forex News Trading Canada Core CPI m/m 04/19/11
