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