By Darrell Martin
Many people are familiar with this saying that means that if you put in an honest day’s work, you will be paid an agreed amount, or an ‘honest day’s pay’ for doing so. Work hard and you may get a raise or a promotion. However, if you think about it, if you are paid per hour and you don’t work as hard, you are actually getting a raise.
This fact is known by Bureau of Labor Statistics of the US Department of Labor. On Tuesday, August 11, 2015 at 8:30 a.m. ET, it will release two news reports. The reports are:
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US Preliminary Nonfarm Productivity
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Unit Labor Costs
If productivity decreases, then the worker basically gets a raise, while the business is forced to pay more for what it receives. If the worker is not giving an honest day’s work for an honest day’s pay, productivity and labor-related inflation are affected.
Nonfarm Productivity
The Nonfarm Productivity report measures the change in labor efficiency when producing goods and services, not including the farming industry.
Unit Labor Costs
The change in the price businesses pay for labor, not counting farming, is measured by and reported in the Unit Labor Costs report. This report is a leading indicator of consumer inflation.
For both of these reports, if the numbers come out higher than expected it should be regarded as positive for the USD. If the numbers are lower, that should be taken as negative for the USD.
Trading Suggestion
Using EUR/USD Nadex Spreads, an Iron Condor would be an excellent strategy for trading this news report. To get the most possible profit, buy a lower spread and sell an upper spread as early as 8:00 a.m. ET with a 10:00 a.m. ET expiration time. Enter both sides of the trade at the same time. It is important to have the ceiling of the lower spread equal to the floor of the upper spread. You need to enter when the market is trading near that same level. The minimum profit you are looking for it is $30. If all of these parameters are not present, do not force the trade.
If you would like more detailed information on setting up an Iron Condor trade, please read The Awesomeness Of An Iron Condor. To further your trading education, go to www.apexinvesting.com, a service of Darrell Martin. Nadex can be traded from 49 different countries.