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Forex Signal (Fri July 22 2011, 7:00am NY Time EST) - CAD Core CPI m/m

Discussion in 'Current Forex Trading Signals' started by Henry Liu, Jul 21, 2011.

  1. Henry Liu

    Henry Liu Former FPA Special Consultant

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    CPI is also known as Inflation and our focus will be on the Core Inflation figure, also known as CPI excluding Food and Energy, or CPI ex Volatile Items…

    Here’s the forecast:
    7:00am CA Core CPI m/m Forecast 0.0% Previous 0.5%
    ACTION: USD/CAD BUY -0.2% / SELL 0.3%


    The Trade Plan
    The Core CPI report will be released today and our deviation for this release, based on a historical track record, around 0.2% ~ 0.3%. Therefore, look for tradable figures of -0.2% or worse to BUY USD/CAD, or a 0.4% or better to SELL USD/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:
    Henry Liu's Trading Method


    The Market
    With the entire market waiting for decision out of the recent EU Summit and the fact that CAD has been strengthening based on favorable economic data and BOC's stance for withdrawing stimulus, we may see some bullish sentiment for CAD prior to the release. If we get a strong CPI number, traders will speculate BOC hiking rates sooner than later, thus CAD may gain across the board.

    However, USDCAD's exchange rate is highly correlated with USD sentiment, therefore I'd be more inclined to BUY USDCAD on a worse release rather than SELL USDCAD because a strong CAD is not in the best interest of Canada, especially with USD.

    Additional Thoughts
    USDCAD may stall until the equity market opens; therefore I’d recommend use patience when trading this pair during 7:00am hour. Also Core CPI rarely surprises much, so if we do not get our deviation, just stay out of the market until U.S. market opens.

    Pre-news Consideration
    There is no pre-news trading for this event.

    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”.

    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.

    Historical Chart and Data for CAD Core CPI m/m



    Thanks,



    [​IMG]
     
    #1 Henry Liu, Jul 21, 2011
    Lasted edited by : Sep 8, 2016
  2. dkami

    dkami Sergeant

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    Henry LIE is a con-man stay away from his SCAMS neither Henry or his robot can trade for **** here are his results

    10kto1mm program after 10mths = balance is $3577.68 with a USDCAD BUY trade on that has a floating loss of $752.00 with no SL on

    Currency strength robot = Henrys starting balance was 5k now after 3mths his balance is down to $1336.60

    Henry LIE has a new SCAM out 4xlearning.com STAY AWAY FROM HIM IF YOU DONT WANT TO LOOSE YOUR MONEY


    Here are the links here on FPA
    http://www.forexpeacearmy.com/public/review/10kto1mm.com

    http://www.forexpeacearmy.com/public/review/currencystrengthrobot.com

    http://www.forexpeacearmy.com/forex-forum/scam-alerts-folder/15041-henry-liu-scam.html

    Warning Henry LIE runs off this site newbies must be warned
     
    #2 dkami, Jul 21, 2011
    Last edited: Jul 21, 2011

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