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USD/CAD binary signal - Canada inflation data - 23 Mar 2018

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Expiry Time: 
21:00 GMT
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Statistics Canada will be releasing the monthly inflation figures today at 12:30 GMT. According to the economists polled, Canada's headline inflation is expected to rise at a pace of 0.4% for the month of February. In January, inflation surprised to the upside as consumer prices rose 0.7% on the month beating market estimates.

The increase in consumer prices came on account of favorable base effects and the increase remained in line with the uptrend in consumer prices. Various other measures of inflation will also be released including the core CPI which strips the volatile food and energy prices.

Alongside the consumer price data, retail sales numbers will also be coming out. Core retail sales for Canada are expected to show a 0.9% increase on the month. This would partly offset the 1.8% decline registered previously. Headline retail sales are forecast to surge 1.1% on the month reversing the declines of 0.8% from the previous month.

Combined, both the retail sales report and the inflation data could potentially spark speculation on the next interest rate hike from the Bank of Canada. The BoC has kept interest rates unchanged for the past three months after hiking rates two times last year.

Although economic data in Canada remains positive, uncertainty from global trade policies and Canada's negotiation on the NAFTA is expected on weigh on the central bank officials, thus keeping them away from pursing a faster pace of rate hikes.

Based on the above, today's binary signal is USDCAD. The currency pair has been in a decline with higher oil prices pushing the Canadian dollar higher. The recent breach of the trend line suggests that further declines could be in store.

Therefore, we are looking for daily PUT options in USDCAD at 1.2907 for 21:00 GMT expiry time. We expect the very short term consolidation to potentially break out to the downside as USDCAD is expected to close lower on the day.

binary options signal usdcad 23 mar 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion. All risks and coasts associated with online trading are your responsibility.