Trading Nadex Into The News: USD Consumer Price Index October 22, 2014

8:30 AM Wednesday, October 22, 2014 looks like it is going to have seven news reports released that affect the USD. Six of the seven of these reports involve the Consumer Price Index and the last one is the Real Earnings.

Real Earnings is a report that comes out monthly. It measures wages, salaries and other earnings and is corrected for inflation over time so that it shows actual changes in purchasing power.

The other reports all concern some form of the Consumer Price Index. Some of them are for monthly reports and some are annually. They all measure the change in the price of goods and services from the perspective of the consumer. It is actually based on what is termed a fixed market basket of goods and services. This market basket includes things that people buy for day-to-day living such as the prices of food, clothing, shelter, fuel, drugs, transportation fares, and doctor’s and dentist’s fees.

If you want to trade this News Event, look for an Iron Condor on Nadex Spreads utilizing EUR/USD as your trading instrument. Because these reports will be released at 8:30 AM, enter as early as 8:00 AM with an expiration of 10:00 AM. This should give your trade time to make its move, then it is anticipated to expire within the range because it is an Iron Condor. The Iron Condor strategy is when you buy a lower spread and sell an upper spread with the same expiration time on the same instrument. Over the last few months, the forecast has been the same as it is for this month which is 0.2%. The actual over the last three months has come in at either 0.0% or 0.1%. Realize if it is higher than expected, it is positive or bullish for the USD. If lower than expected, it is negative or bearish for the USD. You will want a minimum profit of $30.

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