Forex News Analysis US Core CPI m/m 04/13/12

us dollar Forex News Analysis US Core CPI m/m 04/13/12We´ll be trading US Core CPI m/m release tomorrow. CPI or Consumer Price Index, also known as the “true cost of living”, is what drives Central Banks to raise/cut interest rate, therefore this release will be widely watched. Here´s the forecast for the CPI:

8:30am (NY Time) US Core CPI m/m Forecast 0.2% Previous 0.4%
ACTION: 0.0% BUY EURUSD

The Trade Plan
Our minimum tradable deviation for this release is 0.2%; if the release number (core) decreases to a minimum 0.0% then we will BUY EURUSD. Historically even at a difference of 0.1%, market is likely to exaggerate its move, therefore if our tradable release is hit, there is about 80% of chance market will move 50 pips within the next 90 minutes or so.

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We´ll be trading this release using our after news retracement trade method.

For more information on my trading methods:
http://www.currencynewstrading.com/how-to-get-started-with-news-trading/

The Market
Following the pessimistic reaction over last week’s NFP, USD is likely to remain in consolidation, and we should look to trade in the direction of SELLING USD, especially also considering the Weekly Jobless Claims numbers…

Additional Thoughts
With Fed’s mandate on both Unemployment and Inflation, today’s CPI may not be enough to change Fed’s view on their monetary policy, therefore I believe the effect may be short-lived.

Pre-News Consideration
No Pre-news for this release.

DEFINITION:
“CPI, Consumer Price Index, is a statistical estimate of the movement of the prices of goods and services bought for consumption purposes by households. Its computation uses price data collected for a sample of goods and services from a sample of sales outlets in a sample of locations for a sample of times and estimates of the shares of the different expenditures in the total covered by the index which are usually based upon expenditure data obtained for sampled periods from a sample of households wikipedia).” It is also known as the “True Cost of Living”.

Thanks,

henry sig Forex News Analysis US Core CPI m/m 04/13/12

Avatar of Henry Liu 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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