Today we were watching two sets of data. The first was the UK CPI which came out as expected however some of the supporting data deviated by .1% and the market moved very well. It was actually quite unexpected however we passed Since the actual release didn’t hit our triggers.
The second pieces of data that we were watching was the CAD CPI Core and this release was a smashing success. The plan for this release was to go short if the Core number came out higher than expected by .2 or more. Not only did the data that we were focused on hit our triggers but all the supporting data came out in very strong agreement. We were actually in and out of this trade very quickly with around 40 pips profit. To see the video of this release click the following link.
OUR NEXT LIVE ON THE NEWS TRADE CALL
STCA Canada Retail Sales Core Release date: Mar 21, 2007 8:30:00 AM EDT Expected: 0.2
STCA Canada Retail Sales MoM S Release date: Mar 21, 2007 8:30:00 AM EDT Expected: -0.2
The next release we have is the Cad Retail Sales Core. This data is expected to be released at .2. I will be looking for .4 in deviation and if the data comes out higher than what is expected I will go short on the USD/CAD and if it comes lower I will go long. I will also keep an eye on the Retail Sales MoM as well. As long as there are no conflictions this should be a pretty cut and dry trade.
We also have the FOMC rate decision coming out tomorrow. we don’t trade this live in the room however the RSS will be set up for it. It is expected that the FOMC will remain the same at 5.25. if they unexpectedly raise rates this would cause a fall on the GBP/USD of around 100 pips possibly. If they happen to lower rates by .25 or more than a rally would be seen on the GBP/USD of possibly 100 pips or more.
It is unlikely that rates will be changed however if they are we will be ready.
Good Luck trading!!!
