Canadian CPI: Fundamental Thoughts for June 17, 2016
This night, I took a few hours to gather my research on the upcoming Canadian economic release - the CPI. Gathering all my data on Canada, from observing my very own leading indicators for the country and observing manufacturing and sales data, I can confidently say that the upcoming risk event - CPI and/or CORE CPI for the Canadian economy will have a surprise to the upside! What's more, other economists agree with me.
So, I plan to buy the CAD for tomorrow against a weaker currency. This could be the US Dollar, the EURO, NZD or CHF, even the Yen as a short-term daytrade. I am not sure at the moment. I will possibly know in the morning.
Risks to this trade: If the USD is the only currency that I can pair this with in the morning, the risk to this trade would be US data coming out tomorrow; data that I cannot predict, but only have a hunch about, and I don't go by hunches, but by evidence. If US data is bullish, then it could destroy the case to sell USDCAD. No data for Japan in the morning, so I will be looking at the Nikkei for any move up in the equity market to BUY the CADJPY pair.
So, I plan to buy the CAD for tomorrow against a weaker currency. This could be the US Dollar, the EURO, NZD or CHF, even the Yen as a short-term daytrade. I am not sure at the moment. I will possibly know in the morning.
Risks to this trade: If the USD is the only currency that I can pair this with in the morning, the risk to this trade would be US data coming out tomorrow; data that I cannot predict, but only have a hunch about, and I don't go by hunches, but by evidence. If US data is bullish, then it could destroy the case to sell USDCAD. No data for Japan in the morning, so I will be looking at the Nikkei for any move up in the equity market to BUY the CADJPY pair.
Trade closed: target reached
Trade closed: target reached
Capturing the swings of the stock market & currency market. It's a dirty job and equity/currency traders must do it.
USDCAD: