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EUR/GBP binary signal - BoE MPC Member Haldane speech - 21 June 2017

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Expiry Time: 
20:00 GMT
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The Bank of England's monetary policy committee member and chief economist Andrew Haldane will be speaking today. His speech comes just a day after BoE Governor, Mark Carney said that it was not the right time to raise rates.

The British pound was seen trading weaker following the comments from the BoE Governor yesterday. In the previous monetary policy meeting, the BoE voted to keep interest rates unchanged at 0.25%. However, there were three MPC members who voted for a rate hike. This briefly sent the British pound higher.

Clarifying to the markets, the BoE Governor Carney said that domestic inflation and wages remained a concerned. He said that the central bank will assess the economy over the next few months including taking into consideration how the economy will react to tighter monetary policy conditions.

The UK has been experiencing higher inflation amid falling wages. This is expected to create a squeeze on household spending which could in turn slowdown the economy.

Today's speech from Andy Haldane is likely to see the policy maker tow the same line as that of the BoE Governor Carney. Haldane has been known in the past to be both hawkish and dovish, depending on the prevailing market conditions.

Given that Haldane's speech comes just a day after Mark Carney's speech, any hawkish comments from the chief economist is likely to be brushed aside by the markets.

Considering the above factors, today's binary options trading signal recommendation is for EURGBP CALL option.

Yesterday, the EURGBP reversed the declines below 0.8756 and posted a bullish close. However, the fact that this has resulted in lower high could mean that there will be some strong downside in prices. There is also the possibility for EURGBP to extend the gains towards 0.8850, marking the previous high that was formed on June 12 and 13th.

Therefore, we would purchase daily CALL options at 0.8778, for a 20:00 GMT expiry time. We expect to see EURGBP retrace before closing the day on a bullish note.

binary options signal eurgbp 21 06 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.