I wanted to recap what we did on the last live trade call and give you the criteria for two possible trades tomorrow.
The last trade call I sent out covered the UK CPI report this morning. Our focus was on the CPI EU Harmonized YoY number, and we were looking to sell the GBP/USD if the number came out at least 0.2% lower than expected. The actual number came out with a deviation of only -0.1%, so our safe trigger was not met and we did not enter the trade.
To view the video of this trade click on the link below:
We also had several traders report profits of 40 to 75 pips on the US interest rate release this afternoon. The release met our safe trigger of .25% and the market made a significant run. Although we didn’t have the Live Trade Room open, the RSS can be set up to trade most news releases from the US, UK Canada, Australia, New Zealand and Japan.
OUR NEXT LIVE ON THE NEWS TRADE CALL
Tomorrow we will have two opportunities to trade when the Canadian and US CPI reports will be released.
First up will be the Canadian CPI report, which will be released at 7:00 am EDT. We will be focusing on the CPI Excluding Core 8 (YoY) figure, which will be Row 1 on the RSS. The expectation for this report is 2.3%. We will be looking for a deviation of 0.2% to trigger a safe trade.
A higher than expected number would be good for the CAD and would signal a short on the USD/CAD or EUR/CAD, and a lower than expected number would be bad for the CAD so that would signal a long on the USD/CAD or EUR/CAD. This particular report seldom meets our safe trigger, but can provide some good moves even when it meets our medium trigger of 0.1%.
This release has at least met our medium trigger five out of eight months this year, and has provided moves of 20-50 pips. The last time this release met our medium trigger was in July, and we had traders report profits of up to 35 pips on the USD/CAD.
To view the video of this trade click on the link below:
The next release will be the US CPI report, which will be released at 8:30 am EDT.
We will be focusing on the CPI Excluding Energy & Food (MoM) figure, which will be Row 1 on the RSS. The expectation for this report is 0.2%. We will be looking for a deviation of 0.2% to trigger a safe trade. A higher than expected number would be good for the USD and would signal a short on the GBP/USD, and a lower than expected number would be bad for the USD so that would signal a long on the GBP/USD.
Again, this release can provide some good moves even when it meets our medium trigger. This release has met our mediumtrigger three times this year and each time has provided moves of over 30 pips. The last time this release met our medium trigger was in June, and the market moved approximately 35 pips.
To see a video of June’s trade please click on the link below:
This is our current outlook for this trade; however, it is subject to change as market conditions may change by tomorrow. Be sure to log in to the Live Trade Room 15 minutes prior to the release to get my commentary on this potential trade. Good Luck!!!!
