Trade Idea: Canadian Employment And Unemployment News
Canada releases two different reports regarding employment. There is the Employment Change, released right after the month ends, having impact as it is the actual change in the number of employed people during the previous month. Traders watch this one due to its influence on consumer spending. The other report is the Unemployment Rate, which is considered more a lagging indicator.
Statistics Canada will release the two reports, Friday, April 8, 2016, at 8:30 AM ET. Together they get the market moving. Based on previous market reaction to these news reports, an Iron Condor using Nadex spreads, going for a $35 or more profit potential, is a high probability trade opportunity.
One potential trade idea is a Nadex USD/CAD spread with the ceiling being where the market is trading at the time, while selling a Nadex USD/CAD spread with the floor being where the market is trading at the time.
Keep Your Risk Realistic To a 1:1 Risk Reward Ratio
Traders can enter as early as 7:00 AM ET for 9:00 AM ET expirations. To manage the max risk and keep it realistic, they can put limit stop orders at the max risk/reward points where the market could hit 70 pips up or down.
The breakeven points, depending on the exact entries, are where the market could hit 35 pips up or down.
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