• Negative Inflation drags: The UK's core inflation rate is printed at negative 0.1% in April 2015 as reported by the Office for National Statistics.
  
  
• Drop in PPI: Producer Prices in the UK decreased 1.7% in April of 2015 over the same month in the previous year as reported by the Office for National Statistics.
  
  
• Core Inflation: While the Core Inflation Rate in the UK increased 0.8% in April of 2015 over the same month in the previous year. This figure tracks any changes in prices that consumers shell out for a basket of goods which rules out some volatile price items.
  
  As a result GBP/USD was down 0.63% to 1.5555 from around 1.5576 ahead of the data.
  
  We reckon OTM put option looks superior over At-The-Money contracts. In order to reduce the cost of hedging on such downswings one should know what has to be deployed and what to deplete.
  
  Hence, optimal usage of option contracts comes into the picture. Aggressive traders might think that this advocate implies risk averse mindset if we keep recommending spreads to cut down the extra premium prices. But ultimately that is how it comes from money management technique.