7:00am (NY Time) CA Core CPI m/m Forecast 0.1% Previous 0.0%
ACTION: USD/CAD BUY -0.2% SELL 0.4%
I’ll be looking for at least a 0.3% of deviation to trade this release as per historical data any less deviation would not move the market in a significant manner. Therefore if the Core CPI comes out at 0.4%, which will be good for the CAD, I’ll be selling USD/CAD; if the Core CPI comes out at a -0.2% or worse, I’ll be buying USD/CAD…
Canadian Dollar has been unable to break recent support at the 1.1000 area, if this release turns out to be on the negative side, it may be possible to enter as close to the 1.10 as possible for a potential to see 1.1500 in the next few days or a few weeks tops.
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”.
[flv:http://www.newsprofiteer.com/081909-cadcpi/081909-cadcpi.mp4 480 360]
UPDATE: The Core CPI figure was at 0.0%, which didn’t really hit our trigger… as a matter of fact, market went the opposite direction, pretty much against convetional wisdom, but because of this same reason we stay out of trades like this to avoid getting killed by news releases. It is a no trade, but if you got the time to watch this video, you should as I also explained some fundamental and technical factors that may help in your understanding of news trading.
Related posts:
- Canada Core CPI m/m 07/17/09
- Canada Core CPI m/m 10/16/09
- Canada Core CPI m/m 11/18/09
- Forex Plan and Video on CA CPI m/m 07/23/10
- Canada Core CPI m/m 09/17/09
- Forex News Trading Canada Core CPI m/m 04/19/11
- Forex News Trading Canada Core CPI m/m 03/18/11
- Forex Trade Plan For Canada Core CPI m/m 09/21/10
- Forex News Trading Canada Core CPI m/m 10/22/10
- Forex News Trading Canada Core CPI m/m 05/20/11
