By Darrell Martin
Each month, Canada releases fresh Gross Domestic Product (GDP) data. The GDP of any country measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. This is the broadest measure of economic activity. It also serves as the primary indicator of the health of the economy. The forecast number for this month remains the same as last month at 0.2 percent.
The Canadian GDP report will be released Friday, July 28, 2017, at 8:30 AM ET. If the reading is higher than expected, it should be taken as positive or bullish for the CAD. However, if numbers come in lower than expected, regard it as negative or bearish for the CAD.
Trade into this news event using Nadex USD/CAD. If implementing an Iron Condor for your strategy, enter as early as 8:00 AM with a 10:00 AM expiration. To set up this strategy, you will need two spreads. One spread is bought below the market and one spread is sold above the market. Since you are looking for a minimum profit of $25, each spread should have a minimum profit potential of $13. The bought spread’s ceiling should meet the sold spread’s floor and be where the market is trading at the time.
If the parameters for the trade do not line up, then there is no trade. Never force a trade. For quick and easy identification of qualifying spreads, traders can use the spread scanner pro, which is available to all traders at no cost. In order to readily spot the desired spreads, the scanner shows visual red and green risk reward bars and numbers for every spread, whether trading it long or short.
After entering this trade, stops can be set where the market would reach 50 pips above and below where the market was at entry. This is where the 1:1 risk reward ratio points would be for this trade.