UK CPI y/y release could provide a good trading opportunity for the Sterling currency as CPI is probably one of the most watched indicator for UK at this time. With last week’s BOE rate decision vote count at 1-0-7 and the express fact on raising interest rates sooner if “Brexit” were to move smoothly, a rise in inflation could definitely push the market to go LONG on Sterling.
Obviously from a long-term point of view, Sterling is likely to recover as BOE starts to increase interest rate, as the current rate of 0.25% provides no more room for further rate cuts…
4:30am NY Time UK CPI y/y Forecast 2.6% Previous 2.3%
The Trade Plan
We´ll be looking to trade this release using my after-news retracement method. We´ll wait for the release, wait for market spike, and then wait for a decent retracement before jumping in. For more information on my trading methods: http://www.currencynewstrading.com/how-to-get-started-with-news-trading/
I’d recommend to use the Recommended Pairs from above as they are based on my CSM, which should provide the best combination of currency pairs to trade based on better/worse news… of course, you can also trade the default pair: GBPUSD.
UK CPI y/y | May 16, 2017 | News Trading Plan
May 14, 2017 by Leave a Comment