8:30am (NY Time) CA GDP m/m Forecast 0.2% Previous -0.5%
ACTION: USD/CAD BUY -0.1% SELL 0.5%
I’ll be trading the CA GDP month on month figure, which is defined (from wikipedia) as “the market value of all final goods and services produced within a country in a given period of time. It is also considered the sum of value added at every stage of production of all final goods and services produced within a country in a given period of time.” GDP number has a direct effect on the Interest rate of the currency, it is one of the news indicators that affects BOC’s decision directly.
We are looking for a +0.5% and -0.1% deviation on the expected 0.2%. Therefore if we get a 0.5% on the monthly GDP, it would be somewhat CA Dollar positive. We will SELL USD/CAD. However, if we get a -0.1% release, then we would be BUYING USD/CAD.
Pre-market trading has been pretty bad for the CAD as traders are dumping CAD as to price in a worse than expected release. This could produce a “Buy Rumor and Sell Fact” effect after the news release, we’ll have to wait until after the release to be sure.
[flv:http://www.newsprofiteer.com/083109-cadgdp/083109-cadgdp.mp4 480 360]
UPDATE: The Actual release came out at 0.1%, which was 0.1% worse than the expected 0.2%; Market didn’t react much immediately after the news, but we start to see some profit taking combined with a weaker USD as based on the general market sentiment. I decided not to take a trade based on this release, which proved to be a great call as the market eventually reacted in reverse of the news.
Related posts:
- Canada GDP m/m (Gross Domestic Product) 09/30/09
- Canada GDP (Gross Domestic Product) m/m 10/30/09
- CAD GDP m/m – 06/30/09
- Canada BOC Overnight Rate Decision 09/10/09
- Canada GDP m/m 11/30/09
- Canada BOC Overnight Rate Decision 10/20/09
- Canada Core CPI m/m 10/16/09
- Canada Core CPI m/m 11/18/09
- Forex News Trading Canada Core CPI m/m 03/18/11
- Forex News Trading Canada Core CPI m/m 04/19/11
{ 1 comment… read it below or add one }
In fact the CAD showed continual strength against USD since that announcement from a high of 1.1088 all the way down to 1.0870 on the following day?