Numerous pricing reports for the UK economy come out on Tuesday, April 12, 2016, at 4:30 AM ET. There is a strategy however, that works well for these kinds of news events. Using Nadex spreads, one can enter the night before at 11:00 PM ET for 7:00 AM ET expirations.
The Office For National Statistics for the UK will release six different pricing reports. The Consumer Pricing Index has the most impact due to consumer pricing making up the majority of inflation. The Central Bank watches consumer pricing and will adjust interest rates accordingly to keep inflation in check.
With the anticipated market reaction, implied volatility can build in options. Based on previous market movement to the monthly release of these reports, an Iron Condor strategy using Nadex GBP/USD spreads is one idea, going for a $30 or more combined profit potential.
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