Canada – Raw Materials Price Index (RMPI)
At GMT 12:30 p.m., the Statistics Canada will release the Raw Materials Price Index (RMPI) figure, which measures the changes in the price of raw materials purchased by manufacturers.
Binary options investors consider the Raw Materials Price Index (RMPI) to be an important leading indicator of the consumer inflation in the country because manufacturers usually pass on the higher cost of raw material to the consumers. Hence, rising raw material prices can indicate future consumer inflation in the country.
In May, the Canadian Raw Materials Price Index (RMPI) reading increased by 3.8% and the forecast for June is currently set at an additional increase of 4.4%.
United States – Pending Home Sales
Later in the afternoon, at GMT 2:00 p.m. the National Association of Realtors will release the month-over-month Pending Home Sales figure, which measures the change sin the number homes under contract to be sold over the past month. However, this figure usually excludes the sale of any newly constructed homes.
As the sale of a home has a wide ranging positive effect in the local economy, binary options traders consider the pending home sales figure to be an important leading indicator of the US economy.
In May, the pending home sales (m/m) in the United States increased by 3.4% and the forecast for June is currently set at an increase of only 1.3%.
Trade Recommendation for the USD/CAD
Since June 18, the USD/CAD has trended upwards on the hourly chart and formed a steady uptrend line. On June 24, this uptrend line was temporarily broken. However, the USD/CAD price did not generate sufficient bearish momentum and soon the price retraced above the psychologically important pivot zone around the 1.2310 level.
As the Canadian Raw Materials Price Index (RMPI) reading is expected to grow rate a higher rate over the past month, the fundamental outlook for the USD/CAD would be bearish for the next few days.
Under the current technical market condition, it is recommended that traders consider placing a PUT order with their binary options brokers for the USD/CAD, once the price closes below the 1.2310 level on the hourly time frame.
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