OUR NEXT LIVE ON THE NEWS TRADE CALL
Tomorrow we will have an opportunity to trade when the US CPI
report will be released at 8:30 am EDT. We will be focusing on
the US CPI Excluding Food & Energy figure. The expectation for
this report is 0.2%. We will be looking for a deviation of
0.1% on this report to trigger a safe trade.
We have lowered the safe trigger recently on this release as we
have seen moves of 30 to 40 pips when it meets the 0.1%
trigger. This report met our safe trigger last month and after
a quick spike up, the GBP/USD dropped quite a bit and some
traders reported losses. To see a video of last month’s trade,
click on the link below:
There is an explanation of why the trade went the wrong way
after a quick spike. Everyone was looking towards the upcoming
rate decision a few days after this release. Despite coming
out lower than the expectation, it did not come out lower than
the prior month and therefore the situation had not worsened.
Because of this, it is possible that the lack of change might
have had some influence over the decision whether to lower
rates or not. This unchanged number may have led more to the
not lowering side, which is good for the US and that is why we
saw the US Dollar gain strength after the data.
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!!!!
