CA Core Retail Sales | July 21, 2017 | Forex News Trading

Event Details At-A-Glance:
-0.1%0.4%1.5%0.5%

CA Core Retail Sales is going to provide market volatility for the CAD but once again it is scheduled along with Core CPI so market’s attention is going to be divided, and in a worse case scenario, both figures contradicts each other, market is going to have a field trip with traders’ money as the market will go in whatever direction it wants.

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However, with the long-term view in mind, we are going to “prefer” going long on CAD, especially against USD or JPY, as both of those currencies would work on a strong/weak CAD. At any rate, my focus is going to be more on the CPI than Retail Sales.

8:30am CA Core Retail Sales Forecast 0.4% Previous 1.5%
DEVIATION: 0.5% (BUY CAD 0.9% / SELL CAD -0.1%)

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The Trade Plan
I´m going to be looking for a deviation around 0.5% for this news. Since the forecast is at 0.4%, a reading of -0.1% would be negative for the CAD and we´ll be looking to SELL CAD; however, if the opposite is true, or at least a 0.9% or better is released, I´ll be looking to BUY CAD.

Let´s trade this release using my after-news retracement method. The idea is to wait for the release, then for market to spike first, and then wait for a decent retracement before getting in. For more details on my trading method: 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.

 

 

   

Outlook Score
Outlook score is derived from market sentiment, focus, and economic indicators for the currency. It represents the long-term trend of the currency and its market perception. In short, a strong Outlook Score means more long-term demand for the currency, and a weak Outlook Score is the opposite.

Definition 
Our focus is on the CA Core Retail Sales release and not the headline Retail Sales release; Retail Sales releases from Canada is a month on month release, and basically it´s a measurement of the activities at the retail level of Canada, and the Core release is the same Retail Sales but excluding most volatile components, Automotive Components, which makes up about 25% and it varies seasonly. A better release generally means more consumer spending, which leads to better economy, thus better for its currency. And the CORE reading provides a far more accurate look of the actual economy.

Thanks,




Currency Pair Stats
Pair2H50+2H50RangeDirectionPN30PN60PN90Spike
EURCAD75.7%41.7%7594.8%28374632
USDCAD58.3%41.7%6394.8%21303625
2H-50+ = % of 50+ pips move in 2hrs. | 2H-50 = % of 50+ pips move in 2hrs. for the last 2 years | Range = average range in 2 hrs. | Direction = % match following news direction | PN30 / PN60 / PN90 = average pips move before news release in 30, 60, or 90 mins. period | Spike = initial average spike
About Henry Liu

My name is Henry Liu and I am a Forex Trader and Mentor. I help traders achieve consistent income trading Forex while spending less time trading. My focus in trading is a combination of Fundamental Analysis, Technical Analysis, and Market Sentiment. Far too many retail Forex traders concentrate on just one aspect of trading, technical analysis, and ignore everything else; it is my goal (and vision) to educate every trader on how to take advantage of news trading and become more balanced traders.

You can find more information about me on my Google Profile.

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