The Fundamental FOREX Blog

Tomorrow, Friday, 10-16-09 at 7:00 AM ET, 4 Canadian economic reports are scheduled to be released. These are:

CAD Core Consumer Price Index MoM
CAD Consumer Price Index YoY
CAD Bank Consumer Price Index Core MoM
CAD Bank Consumer Price Index Core YoY

The Core Consumer Price Index MoM appears to have the greatest impact on the FOREX market.

All 4 reports are released by Statistics Canada.

The last time these reports were released was on Thursday 09-17-09 at 7:00 AM ET.

I did a “follow up” post on Sunday, 09-20-09 – click here for a review.

Here is how things look for tomorrow:

CAD Core Consumer Price Index (MoM) Stats

previous = 0.1%

forecast = 0.2%

CAD Consumer Price Index (YoY) Stats

previous = 0.0%

forecast = 0.1%

The “forecast” for both of the Consumer Price Index reports shows that the economists believe the Canadian economy will be improving, thus good for  the CAD.

Last month the “actual” came out as “forecast”, and the currency market hardly flinched, none of the six currency pairs that I watch changed direction after the reports were released.

Since the “forecast” shows a potential improvement in the Canadian economy, but not very much, I will probably set up to trade the USD/CAD.

If the “actual” comes out say 0.2% to 0.4%  above or below the “forecast” and both Consumer Price Index (MoM and YoY) move up or down together, I will probably enter a trade.

It really helps if both reports move in concert. Watch out for conflict.

I will post a “follow up” of this report soon after.

The next scheduled release of these reports is Monday, 11-23-09 at 8:00 AM ET.

I will probably post a “preview” a day or two prior.

Stay tuned!