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.
Comment
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Results: USDCAD: CADJPY:
Trade closed: target reached
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Trade closed: target reached
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Comments
ChatchaiVong
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please , update again TP? , thank so much
Rocketman
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Take profit was hit on June 17th and then on June 20th. This CAD trade was my favorite fundamental-technical trade this month. All the research meshed well together.