Heads Up - Canadian inflation due in an hour - Quick setup on the USD/CAD - Forex News by FX Leaders

Heads Up – Canadian inflation due in an hour – Quick setup on the USD/CAD

Posted Friday, August 17, 2018 by
Arslan Butt • 1 min read

The Loonie is unchanged ahead of the top-tier economic events. As explained earlier on Aug 17- Economic Event Brief, the Canadain economy is going to release inflation figures at 13:30 (GMT). Back in June, the Canadian inflation figures soared by 0.1% and 2.5%, fueled by energy prices. We could see a more moderate increase now. Core CPI increased by 0.1% m/m as well, but only 1.3% yearly.

The USD/CAD has formed an ascending triangle pattern which is providing a strong resistance at $1.3175 while supporting it near $1.3120.

USD/CAD - 120 Min Chart

How to trade inflation?

Better than expected Inflation: The CPI figure of 0.3% or higher is likely to cause a sell-off in the USD/CAD. So, I will be looking to stay bearish below $1.3175 to target $1.3115.

Worse than expected Inflation: The CPI figure of -0.1% of lower can cause a massive buying in the USD/CAD. I will be a nice chance to jump in buying above $1.3175 to target $1.3215. Good luck!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
Related Articles
Tensions remained high, with China accusing U.S. Secretary of State Mike Pompeo of fabricating rumors. Watch out trade levels for this week.
6 hours ago

Leave a Reply

Notify of