Tuesday we were watching the CPI out of Canada which came out as expected and resulted in a no trade. I had a lot of people ask me why I didn’t trade the PPI as well and it is quite simple. The PPI has a history of whipsaw so I steer clear. Tomorrow we have Retail Sales being released out of Canada at 8:30am eastern. The expected number is all over the place. The highest I have seen is 1.4% and the lowest is .2% so this will be tricky. I have decided to use .6% as my expected number. I will trade this with less lots because there is such a broad spectrum of expectations the market may react week to this. On the other hand both Forex Factory and Daily FX post .5% therefore there could be a large shock value if the number comes out on the higher end of the spectrum. CitiGroup as well as Merrill Lynch both have the expected number above 1.2% so we could have a nice trade. If the number comes out higher than expected I will sell USD/CAD and if the number comes out lower than expected I will buy. Keep an eye on the Initial Jobless claims as well coming out of the US it could affect the move. A higher number is bad for the US and a lower number is good for the US. If this is the first time you are receiving my trade calls please visit this page for important information on how to trade using this information. Good Luck!!!
