CA Core CPI is a high impact release for CAD and as stated in the other CA analysis (Retail Sales), both releases are scheduled at the same time which will make trading today a bit complicated to say the least.
Since CPI is a direct measure of inflation, and inflation is what Central Banks gauge when adjusting their interest rates, a strong release will have a long-term impact whereas a weak release will take pressure off, sort to speak.
Obviously with Crude Oil prices stabilized, market is going to pay closer attention to the economy, and this release is definitely one of the most watched for CAD.
Here´s the forecast:
8:30am CA Core CPI m/m Forecast 0.0% Previous 0.1%
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 | July 21, 2017 | Forex News Trading
July 16, 2017 by Leave a Comment