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Forex Signal (Thu March 31 2011, 8:30am NY Time EST) - CA GDP m/m...

Discussion in 'Current Forex Trading Signals' started by Henry Liu, Mar 31, 2011.

  1. Henry Liu

    Henry Liu Former FPA Special Consultant

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    We’ll be receiving the monthly GDP release from Canada today. Here’s the forecast:

    8:30am NY Time Canada GDP m/m Forecast 0.5% Previous 0.5%
    ACTION: USD/CAD BUY 0.2% SELL 0.8%

    The Trade Plan

    I’ll be looking to BUY USD/CAD if we get a 0.2% or lower release, and SELL USD/CAD if we get a 0.8% or higher… With recent uncertainty in the general market, a strong surprise in this GDP number may be the catalyst we need to see more volatility in CAD.

    For more information on my trading methods, please read:
    Henry's News Trading Method.

    The Market
    Because GDP is basically the measurement of the “economy” as a whole and it certainly has a tremendous impact on the official interest rate, as better GDP equals to higher inflation, and higher inflation means higher interest rate. However, Canada releases its GDP on a monthly basis, which diminishes chances for surprise. As a matter of fact, CA GDP has not been a very tradable release due to the most in-line with expectation figures...

    With USDCAD trading at the 0.9700 level due to the recent uncertainty in the Middle East, a stronger fundamental may not move the market much because CAD is already overbought; however, on a weaker than expected GDP release, market could consolidate recent CAD rally as traders protect their profits.

    Additional Thoughts
    USD/CAD is my official pair for this trade, and this pair does not give up retracement easily. In the event that we get a strong release, expect USD/CAD to spike, stall, and then spike again. We may see some limited retracement, if any. The strategy to trade this release is usually just get in as soon as possible and let it ride.

    Pre-news Possibilities:
    No Pre-news for this release...

    Definition
    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.”

    For Historical Data & Chart For CA GDP m/m


    Thanks,



    [​IMG]
     
    #1 Henry Liu, Mar 31, 2011
    Lasted edited by : Sep 8, 2016
  2. Sthiag

    Sthiag Banned

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    My Request

    Dear Henry,

    It is my humble request to put some reviews and your points after each previous news signals ends,the effect made in market,the profit you are able to make and all

    Sivaraj.T
    sivaraj.t@gmail.com




    :confused:
     
  3. reja81

    reja81 Recruit

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    Hi friends!
    I've met Anna Monti on the web and her Forex Freebot. I find this stuff interesting for newcomers. Just for notice :)
     

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