UK CPI y/y release is going to be a major release for the new year. With the market back at full-force, we should see plenty of market reactions if inflationary pressure were to remain above the 3.0% threshold, as BOE is both tolerate but mindful of this figure.
Considering the recent change of stance by the BOE, if we get a persistent upward reading on these CPI figures, I wouldn’t be surprised to see another rate hike soon.
4:30 am NY Time UK CPI y/y Forecast 3.0% Previous 3.1%
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 a 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 using 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 | January 16, 2018 | Forex Strategy
January 14, 2018 by Leave a Comment