By Darrell Martin
At 8:30 AM, on Wednesday, October 22, Canada will release its Core Retail Sales Report. This report measures the change in the total value of sales at the retail level, not including automobiles for all of Canada. This is an important indicator as it reflects the amount of consumer spending which also indicates the pace of the Canadian economy. This report is released each month. Last month’s report was -0.6%. The forecast for Wednesday calls for a positive 0.3% reading. This should indicate to you, as a trader, to take a positive or bullish approach on the CAD side of your trade.
For this News Event, the suggested strategy is an Iron Condor performed using a Nadex Spread on the USD/CAD. Enter as early as 8:00 AM with an expiration of 10:00 AM giving the market some time to move to profit in your favor. You are looking for a profit of at least $30. Remember when doing an Iron Condor, you want to buy the lower spread and sell the upper spread. Below is an image showing an example of upper and lower contracts you would choose when entering an Iron Condor trade. There is also a visual image of what an Iron Condor looks like in relation to the potential action on the charts.