CA Core CPI is a high impact release for CAD although it’s usually not very tradable unless we get a huge deviation. Since we do have the first GDP release out of U.S. at the same time, I’d recommend paying close attention to both releases before taking a trade. As a matter of fact, I would focus more on the US news as it is a quarterly release and has a higher impact on the overall market.
Here´s the forecast:
8:30am CA Core CPI m/m Forecast 0.1% 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 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: 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 | January 26, 2018 | Forex News Trading
January 21, 2018 by Leave a Comment