[8:30am NY Time]
Retail Sales is usually a very tradable release as traders
draw direct correlation between retail activities with
economic health.
Here´s Forecast:
8:30am Core Retail Sales
Forecast 0.5% Previous 0.0%
ACTION: USD/CAD BUY 0.0% / SELL 1.0%
USD/CAD is the recommended pair, if we get a strong deviation, don´t expect much retracement. Also pay attention to the parity level as the current market is just around that level.
Definition
Our focus is on the Core Retail Sales release and not the headline Retail Sales release; Retail Sales releases from Canada is a month on month release, and basically it´s a measurement of the activities at the retail level of Canada, and the Core release is the same Retail Sales but excluding most volatile components, Automotive Components, which makes up about 25% and it varies seasonly. A better release generally means more consumer spending, which leads to better economy, thus better for its currency. And the CORE reading provides a far more accurate look of the actual economy.
The Trade Plan
I´m going to be looking for a deviation around 0.4 ~ 0.5% for this news. Since the forecast is at 0.5%, a reading of 0.0% would be negative for the CAD and we´ll be looking to BUY USD/CAD; however, if the opposite is true, or a 1.0% (or better) of actual release, I´ll be looking to SELL USD/CAD.
Book : Beyond Candlesticks - Steve Nison
Book : Japanese Candlestick Charting Techniques - Steve Nison
STEALTH FOREX SIGNALS..... Great performance...
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