FOREX TRADE CALL RECAP

Last Friday we were watching the Canadian CPI report. We were looking to short the USDCAD if the number came out at least 0.2% better than expected. The actual deviation came out at 0.1%, so it missed our safe trigger and we did not enter a trade.

OUR NEXT LIVE ON THE NEWS FOREX TRADE CALL

Tomorrow we will have an opportunity to trade when the UK CPI report is released at 4:30 am EDT. There are several components to this release, and we will be focusing on the UK CPI (EU Harmonized YoY) figure. The expectation for this report is 2.9%. We will be looking for a deviation of 0.2% to trigger a safe trade.

We have seen the GBP/USD in an uptrend lately, although we have seen a rather large retracement the last few days. For that reason we will be very careful on this particular release. We could see a good initial move with a trigger in either direction, but we will most likely close out the trade quickly if we get a sell trigger. We will also want to be very careful on this release as a couple of times the last few months the initial move has gone against the deviation by about 20 pips before it moved in the correct direction.

This report has met our safe trigger in seven out of the last nine months, and the GBP/USD has moved approximately 15-60 pips each time, except for two months when the GBPUSD initially went against the direction of the deviation. Last month this release met our safe trigger and the GBPUSD initially spiked the wrong direction by about 20 pips. After a couple of minutes it did turn around and move as expected. Most traders held on to the trade and reported profits of up to 20 pips, depending on their entries. The chart below shows the movement of the GBP/USD at the time of last month's release:

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!!!!