CPI anticipation orders.

Today's US CPI could be a market moving event. A number suggesting disinflation is on track should reinforce the risk on environment. And a number higher than expected could send the market back into 'hard landing fears'.

I think it's worth pre event anticipation orders on the USD.

For a USD negative number (soft inflation) I'll set an AUD USD long 'buy stop order' a few minutes before the release (see photo above for rough guide).

For a USD positive number (higher inflation) I would ordinarily place a USD JPY long trade. But I'm not sure how the JPY would react if the market returns to fear mode. Therefore, due to the RBNZ rare cut today (and the market thinks more NZD cuts are on the way) I'll place a USD NZD 'sell stop order'.

As soon as an order triggers, I'll delete the other order. If no orders trigger within 90 seconds, I'll delete both orders and re-asess.

Of course, if the data is market moving, there will be the possibility of post event trades. Either as a catalyst on a shorter time frame or a standard trade after a 1hr swing.

Feel free to email any questions: johnelfedforexblog@gmail.com