Core CPI Data Release, Live Trde and Analysis10-April

Here is the GBPCAD signal:

Pending Order: A “Sell Limit” order for GBPCAD is placed at 1.7220.
Stop Loss: Set at 1.7240.
Take Profit Levels: Target levels are 1.7190 and 1.7160

GBPCAD signals of cpi

GBPUCAD Moved exactly and hit the target +60 PIPs

GBPCAD Smart Money Analysis

    • Market Structure Change (CoCH): We identified that GBPCAD’s market structure shifted.
    • Break of Structure (BOS): Subsequently, the pair broke the established structure, signaling a potential shift in momentum.
    • Short-term Bullish Phase: Following the BOS, the market exhibited a short-term bullish sentiment, reaching the estimated Point of Interest (POI).

This trade is based on our SMC and Price Action Method, as you can see in the char we marked the pair GBPCAD’s first market structure changed (CoCH marked). after that, it breaks the structure (BOS) marked. The market became short-term bullish it touched the esteem POI and moved downward. The trade activated before the CPI data release during the data release it hit the target.

gbpcad profit

If you are not sure about What are the here BOS, ChoCh, and POI Please get our FREE Forex Trading course on Smart Money, It will remove all your confusion on SMC Trading.

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Core CPI Data Keypoints

  • Positive Developments in the US Dollar’s Favor: Core Consumer Price Index (CPI) exceeded expectations for the third consecutive time, indicating a persistent year-on-year increase.
  • Less Positive Aspects to Consider: The unrounded increase in Core CPI was slightly lower than expected. Housing inflation remained strong despite some private-sector data suggesting weakness.
  • Impact of Strong Labor Market and Consumption: Robust consumption and a strong labor market are contributing to higher inflation.

Core CPI Analysis

The US Dollar seems to imply that the recent positive developments are indeed favorable. The Core Consumer Price Index (CPI) exceeded expectations for the third consecutive time with a 0.4% reading, indicating a persistent 3.8% year-on-year increase. However, there are some less positive aspects to consider. Firstly, the unrounded increase in Core CPI was 0.359%, slightly lower than the expected 0.4%. Secondly, despite private-sector data suggesting weakness, housing inflation remained strong. It’s worth noting that the core Personal Consumption Expenditures (PCE) measure assigns less importance to housing. Despite these considerations, the strong labor market and robust consumption are contributing to higher inflation, which in turn is likely to lead to higher interest rates. Given that inflation is decreasing in other parts of the world, there is potential for weakness in the US Dollar. This means that due to lower inflation in other countries, the US Dollar may face downward pressure. This is because lower inflation in the US compared to other countries could make the US Dollar less attractive in the global market, leading to a potential decrease in its value relative to other currencies.

 

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