We’ll be trading US Core CPI m/m release today. CPI or Consumer Price Index, also known as the “true cost of living”, is what drives Central Banks to raise/cut interest rate, therefore this release will be widely watched. Here’s the forecast:

8:30am (NY Time) US Core CPI m/m Forecast 0.1% Previous 0.1%
ACTION: USD/JPY BUY 0.3% SELL -0.1%

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. 

8:30am (NY Time) US Core CPI m/m  Forecast 0.2%  Previous 0.1%
ACTION: USD/JPY        BUY 0.4%      SELL 0.0%

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 0.4% then we will BUY USD (either SELL EUR/USD or BUY USD/JPY).  If the CPI number decreases to -0.0% 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 to exaggerate its move, therefore if either of our tradable releases is hit, there is about 80% of chance market will move 50 pips. 

8:30am (NY Time) US Core CPI m/m  Forecast 0.1%  Previous -0.1%
ACTION: USD/JPY        BUY 0.3%      SELL -0.1%

We’ll be trading the Core CPI release today and our minimum tradable deviation 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 to exaggerate its move, therefore if either of our tradable releases is hit, there is about 80% of chance market will move 50 pips. 

8:30am (NY Time) US Core CPI m/m  Forecast 0.2%  Previous 0.1%
ACTION: USD/JPY        BUY 0.4%      SELL 0.0%

We’ll be focusing on the Core CPI release today and our minimum tradable deviation deviation is 0.2%;  if the release number (core) increases to a minimum 0.4% then we will BUY USD (either SELL EUR/USD or BUY USD/JPY).  If the CPI number stays flat or decreases to 0.0% 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 to exaggerate its move, therefore if either of our tradable releases is hit, there is about 80% of chance market will move 50 pips. 

8:30am (NY Time) US Core CPI m/m  Forecast 0.1%  Previous 0.1%
ACTION: USD/JPY        BUY 0.3%      SELL -0.1%

8:30am (NY Time) US Core CPI m/m  Forecast 0.1%  Previous 0.2%
ACTION: USD/JPY        BUY 0.3%      SELL -0.1%

We’ll be looking to trade Core CPI release and we are going to look  for a surprise factor of 0.2%;  if the release number (core) increases to a 0.3% then we will BUY of USD/JPY.  If the CPI number decreases to -0.1% or less, we’ll SELL USD/JPY.  Historically even at a difference of 0.1%, market is likely to to exaggerate, therefore if either of our tradable releases is hit, there is about 80% of chance market will move 50 pips.  If you remember what I wrote last time, this is exactly the same consensus expectation as the market is looking at a low yet steady growth in U.S. Inflation for quite some time now…