By Darrell Martin
There are five news reports being released at 4:30 AM on Thursday, October 23, 2014, that will affect trading of the GBP. Those reports include the BBA Mortgage Approvals, both the monthly and the annual Retail Sales Reports, as well as the monthly and annual Core Retail Sales Reports. All of these news releases have Medium to High Importance. Of course, all of the retail sales reports indicate consumer spending which accounts for the majority of overall economic activity in the United Kingdom. If these reports post a higher than expected reading, that should be looked upon as positive or bearish for the GBP, while a lower than expected number would signify a negative or bearish pull for the GBP.
The British Bankers’ Association (BBA) Mortgage Approvals measures the number of new mortgages approved by BBA-backed banks for the previous month. This number includes more than half of the total U.K. market. If it is higher than expected, it should be taken as positive or bullish and lower would mean negative or bearish for the GBP.
Here is chart showing the forecast and the previous amounts that each of these reports released:
A strategy to consider using for these news reports would be the Iron Condor performed using a Nadex Spread with the GBP/USD as the instrument. You can enter as early as 11:00 PM Wednesday, October 22, 2014 with an expiration of 7:00 AM, making this a great trade for overnight traders. This should give your contract time to move in order to achieve the minimum profit of $30.
An Iron Condor is where two contracts are placed on the same instrument with the same expiration time. You buy the lower contract and sell the upper contract.
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