US Core CPI | April 16, 2013 | Currency News
US Core CPI today will once again be an important release as traders are looking at this figure closely due to the thresholds established by the FOMC as reasons to hike interest rate. Of course, Core CPI is only one part of the equation, but nevertheless an important part. We´ll be trading US Core CPI m/m release using the following trading plans:
8:30am (NY Time) US Core CPI m/m Forecast 0.2% Previous 0.2%
DEVIATION: 0.2% (BUY USD 0.4% / SELL USD 0.0%)
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 SELL USD; if the core release is 0.4%, we’ll BUY USD. 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.
We´ll be trading this release using our after news retracement trade method.
For more information on my trading methods: https://www.currencynewstrading.com/how-to-get-started-with-news-trading/
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: EURUSD.
[ffoscore currency=’USD’]
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.
DEFINITION:
“US Core 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,
