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Forex Signal (Wed September 29 2010, 8:30Am NY Time EDT) - CA GDP m/m...

Discussion in 'Current Forex Trading Signals' started by Henry Liu, Sep 29, 2010.

  1. Henry Liu

    Henry Liu Former FPA Special Consultant

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

    8:30am NY Time Canada GDP m/m Forecast -0.1% Previous 0.2%
    ACTION: USD/CAD BUY -0.4% SELL 0.2%

    The Trade Plan

    I’ll be looking to BUY USD/CAD if we get a -0.4% or lower release, and SELL USD/CAD if we get a 0.2% or higher… With recent uncertainty in the U.S. economy, a stronger GDP number may provide strong contrast and we should see more demand for CAD; on the other hand, on a worse than expected figure, market turn on CAD... I’ll be looking for a Retracement Trade Method for this release.

    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, because 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 in a very tight range for the last few weeks, I do believe that regardless of the outcome of this release, USDCAD will ultimately fall back into this range again, therefore we could look for reversal from the top/bottom end of the range.

    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:
    We should be looking to BUY USD/CAD on dips.

    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, Sep 29, 2010
    Lasted edited by : Sep 8, 2016
  2. Beroska

    Beroska Recruit

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    I dont know why, but i receive all your e-mail ( news trading) late, For example about news on 29th at 8 am, i received at 9 pm!. can this problem can be fixed please?
     
  3. Reda DAIMELLAH

    Reda DAIMELLAH Recruit

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    Got off quotes

    Please can anyone help me, every time I try to place an order at the time of news release, I got off quotes all the time, I have FXDD MT4. Is there any better broker, what about FXCM ???
     
  4. C. Collins

    C. Collins Private

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    Date & Time

    To all who read this blog...The date and time for the above message from Henry is for Thursday morning 8:30am New York Time.
    C. Collins
     
  5. rizzo8

    rizzo8 Recruit

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    Dear Henry,

    With the US also have some FA news at the same time, would it still be safe to trade the USDCAD?

    Especially if both the CAD and USD news are favorable to its respective currencies.

    Thanks for the insight.
     
  6. rizzo8

    rizzo8 Recruit

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    Simulataneous news for USD and CAD. So how?

    Dear Henry,

    With the US also have some FA news at the same time, would it still be safe to trade the USDCAD?

    Especially if both the CAD and USD news are favorable to its respective currencies, or unfavorable on both ends.

    Thanks for the insight.
     
  7. Simon Edwards

    Simon Edwards Corporal

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    Requotes ?
     
  8. Huwee

    Huwee Corporal

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    Beroska, what timezone are you in?

    Try using the calendar feature I mentioned in this weeks "Upcoming Signals Overview" post.

    Huwee.
     
  9. Huwee

    Huwee Corporal

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    Rami,

    Try reading through the "Forex Brokers Reviews", which is available in the "Revews & Ratings" menu in the top-left.

    Might help you get an overview of what's available!

    Good luck,

    Huwee.
     
  10. Punle

    Punle Recruit

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    So weird... the actual number was right on the forecast, and two other news at the same time were good for the US, yet USD/CAD went way down??? Oh well I can't complain, got 30 pips out of this :D Thanks again Henry.

    It's still going down should have waited. How do you know when to get out? Does the news that bring a spike usually move 40 pips or more?
     

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