News That Affects GBP To Be Released Early Friday Morning, February 20, 2015


#1

By Darrell Martin

If you have been waiting for a chance to do an overnight trade then this might be it. At 4:30 a.m. EST on Friday, February 20, 2015, there will be several news reports released that will affect trading on the GBP.

Most of these reports involve Retail Sales, which is a measurement of the change in the total value of inflation-adjusted sales at the retail level. This tells us a lot about consumer spending, which in turn shows the activity on the economic level.

If the reading for these reports comes out higher than expected, you should regard it as positive or bullish for the GBP side of your trade. The opposite would be true if the report is lower than expected making it negative or bearish for the GBP side of your trade.

One of the other reports being released at this same time is the Public Sector Net Borrowing Report. This report has a low level of importance in regards to your trading, but it is interesting to learn that it is a measurement of the difference between the spending and income for public corporations, the central government and local governments during the last month.

If this report releases a positive number, that would mean that the budget has a deficit, while a negative number indicates a surplus. The forecast for this report is -7.80 Billion. The previously released number reported was 12.46 Billion.

All of these reports can be traded using an Iron Condor Strategy on the GBP/USD implementing Nadex spreads. You can enter as early as 11:00 p.m. EST Thursday night with an expiration of 7:00 a.m. EST Friday morning.

Make sure that you buy a lower spread and sell an upper spread with the floor of the upper spread equal to the ceiling of the lower spread. It is also a good idea to have these floor and ceiling levels at the current underlying market price.

You are looking for a minimum profit of $35. Just after the news is released the market will react and then it usually settles down. The closer it returns to the center of your Iron Condor, the more profit you make.

If you would like to learn more about trading go to www.apexinvesting.com, a service of Darrell Martin.