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EUR/GBP binary signal - BoE Monetary policy meeting - 14 Dec 2017

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Expiry Time: 
21:00 GMT
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The Bank of England will be holding its final monetary policy meeting of the year. According to the economists polled, interest rates in the UK are expected to remain steady at 0.50% this month. This comes amid the central bank rate hike in November which saw the BoE officials voting to hike rates by 25 basis points.

Earlier this week, data from the UK showed that consumer prices rose 3.1% on the year in November. This was higher than forecasts and higher than the inflation rate registered in October. This came despite the BoE's rate hike previously.

The latest jobs data also did not see any major changes with the unemployment rate in the UK remaining steady. Wage growth continued to lag behind inflation continuing to show that consumers are feeling the pinch of higher consumer prices amid slower wage growth. The equation makes it a bit difficult for the central bank to continue to hike rates which could potentially result in a slowdown in the UK markets.

Besides, the BoE meeting, the European Central Bank will also be holding its monetary policy meeting today. The central bank is expected to keep interest rates and its QE unchanged. This follows the October monetary policy meeting where the central bank announced a taper to its QE program while also extending the QE by another nine months in 2018.

Combined, the BoE and the ECB meetings will spark strong volatility in the EURGBP currency pair. The currency pair is also influenced by the Brexit developments.

Based on the above, today's binary options signal is EURGBP. Earlier today, the currency pair spiked to a one month high. Despite the volatility we expect to see that on an intraday basis, support is formed near 0.8785.

Therefore, we are looking to purchase daily CALL options at 0.8785 for 21:00 GMT expiry time. We expect to see EURGBP briefly dip to the support area before closing higher on the day.

binary options signal eurgbp 14 Dec 2017

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion. All risks and coasts associated with online trading are your responsibility.