CA GDP is expected to move the market in the event of a surprise, considering it’s been a bit of lackluster week as far as high-impact news releases are concerned, market could be looking for a reason to trade… At any rate, we should wait for our minimum deviation to be hit before taking a trade.
Here’s the forecast:
8:30am NY Time CA GDP m/m Forecast 0.3% Previous 0.3%
DEVIATION: 0.3% (BUY CAD 0.6% / SELL CAD 0.0%)
The Trade Plan
Let´s look to SELL CAD if we get a 0.0% or worse release, or we’ll BUY CAD on a 0.6% or better release. With recent weakness in seen in CAD, a strong fundamental such as the CA GDP figure may be the catalyst we need to see more volatility in CAD.
I’d recommend to use the Recommended Pairs above as they are based on my CSM and should give you the best combination of currencies to trade in the event of a better/worse news… of course, you can always trade the default pair for this release: USDCAD.
For more information on my trading methods, please read: https://www.currencynewstrading.com/how-to-get-started-with-news-trading/
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.
CA GDP is defined (by wikipedia) as: “the market value of all final goods and services produced within a country in a given period of time. It is also considered the sum of value added at every stage of production of all final goods and services produced within a country in a given period of time.”