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USD/CAD binary signal - Canada Retail Sales and CPI - 20 Apr 2018

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Signal details
Entry Price: 
1.2657
Close Price: 
1.2764
Direction: 
High
Expiry Time: 
21:00 GMT
Result: 
ITM
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The monthly inflation report from Canada will be released today at 12:30 GMT by Statistics Canada. According to the economists polled, Canada's headline CPI is forecast to rise at a slower pace of 0.4% on the month. This marks a slower pace of increase in inflation compared to the previous month's 0.6% increase.

On an annual basis, Canada's infaton rate is expected to edge higher to show a 2.4% increase. This marks a modest increase from 2.2% in the previous month.

Retail sales data is also expected to be released today. Economists polled expect to see headline retail sales rise 0.4% on a month over month basis. This marks a significantly slower pace of decline compared to 0.9% increase registered just the month before. A weaker retail sales report is likely to put some downside pressure on the Canadian dollar.

The reports come just a few days after the Bank of Canada held its monetary policy meeting where interest rates were left unchanged. However, the BoC said that further rate hikes during the year cannot be ruled out.

Based on the above today's binary signal is USDCAD. The currency pair had previously formed a bottom near 1.2579 - 1.2542 level before lifting higher. We expect the bullish momentum to be maintained in the near term.

With the resistance level at 1.2657 being cleared, we would purchase daily CALL options at 1.2657 for a 21:00 GMT expiry time. We expect USDCAD to continue to maintain the upside bias as the currency pair is expected to close higher on the day.

binary options signal usdcad 20 apr 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. He has no business nor personal relationships with any mentioned government entities or stocks. 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.