Place Your Trade The Night Before For Euro Final CPI And Final Core CPI Release

Friday, April 17, 2015, at 5:00 AM ET the Euro Final CPI and Final Core CPI will be released which in turn will most likely cause the EUR/USD to move for a nice Iron Condor trade setup. CPI stands for Consumer Price Index and is the change in price of goods and services purchased by consumers. The Core CPI is the Consumer Price Index excluding food, energy, alcohol, and tobacco. There are two versions of these reports released monthly and two weeks apart, the Flash and the Final with the Flash having the most impact. Consumer prices have a primary impact on inflation which in turn influences interest rate decisions.

Going back 12 - 24 months of reports and tracking the moves from the EUR/USD in response, it was found by Apex Investing that the market moved an average of 35 pips. Quite often after the move the market will pull back rather than continue in the direction or just unwind sideways. With a move like that and a pullback an Iron Condor can be a great strategy for capturing profits.

Set Up The Night Before At 11:00 PM ET For 7:00 AM ET Expiration

For the Iron Condor setup, use Nadex Spreads looking to enter EUR/USD spreads at 11:00 PM ET Thursday, the night before, with expiration at 7:00 AM ET Friday. The trade should have a $35 or more profit potential. Buy the lower spread and sell the upper spread with the ceiling and floor coming together respectively. The bought spread should have its ceiling where the underlying market is trading and the sold spread should have its floor where the current underlying market is trading. Once the report is released, the market will make its move and most likely pull back. You can leave your trade on until expiration allowing it time to play out.

Market Can Move 70 Pips For 1:1 Max Risk Reward Ratio

The closer the market pulls back to the ceiling of your bought spread and floor of your sold spread, the higher your profit. With a 35 pip possible move, if you set your Iron Condor up with a $35 profit potential, evenly dispersed between your spreads, the market can move up or down 70 pips without a pullback for a 1:1 max risk reward ratio. For a full calendar of scheduled news events to trade along with recommended strategies, visit www.apexinvesting.com. Nadex can now be traded from 49 countries.