CA Core CPI | May 19, 2017 | Forex News Trading Plan

Event Details At-A-Glance:

CA Core CPI is a high impact release for CAD and since it is scheduled along with the Retail Sales, I’d use caution and wait for both figures to be release before even considering a trade.

CPI is likely the main focus for CAD today, because it has the potential to affect central bank policy decisions, it also represent the strength of the economy.  With overall sentiment remaining somewhat negative for the CAD due to tumbling crude prices, I would remain cautious and only take a trade if we get our tradable deviation today.

Here´s the forecast:

8:30am CA Core CPI m/m Forecast 0.5% Previous 0.2%
DEVIATION: 0.3% (BUY CAD 0.8% / SELL CAD 0.2%)

The Trade Plan
The Core CPI report will be released today and our deviation for this release, based on a historical track record, around 0.3%. Therefore, look for tradable figures of 0.2% or worse to SELL CAD, or a 0.8% or better to BUY CAD.

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:

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.

“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”.

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.


Currency Pair Stats
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