CA Core CPI is a high impact release for CAD and since it is scheduled along with the Retail Sales, I’d use caution and wait for both figures to be release before even considering a trade.
CPI is likely the main focus for CAD today, because it has the potential to affect central bank policy decisions, it also represent the strength of the economy. With overall sentiment remaining somewhat negative for the CAD due to tumbling crude prices, I would remain cautious and only take a trade if we get our tradable deviation today.
Here´s the forecast:
8:30am CA Core CPI m/m Forecast 0.5% Previous 0.2%
The Trade Plan
Keep in mind to look for an after-news retracement trade for this release. I´ll wait for the release, then the initial market move, and 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: USDCAD.
Our focus is on the Core CPI or CPI ex Energy and Food components, which provides a better picture of inflation without the seasonal factor.
CA Core CPI | May 19, 2017 | Forex News Trading Plan
May 14, 2017 by 2 Comments