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EUR/GBP binary signal - ECB Meeting minutes - 12 Apr 2018

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Entry Price: 
Close Price: 
Expiry Time: 
21:00 GMT
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The economic calendar today will focus on the ECB's monetary policy meeting minutes. The minutes cover the ECB's monetary policy meeting held in the month of March. The minutes will be released at 11:30 GMT today.

Investors will be particularly interested to know where the central bank stands in terms of the monetary policy's forward guidance. At the March ECB meeting, the central bank did not make any changes. It left interest rates unchanged and also signaled a continuation for its QE purchase program which is expected to run until September this year at a pace of 30 billion euro.

The ECB removed some dovish language from its statement, but the ECB President Mario Draghi however offset the hawkish language by noting in the press conference that the ECB remained continued to support the economic recovery and said that the central bank was committed to extending or increasing the QE program is need be.

Consumer prices in the Eurozone have been broadly stable but still remains far away from the ECB's 2% inflation target rate. The euro was seen initially strengthening after earlier in the week, an ECB official was hawkish on his comments on monetary policy. However, the common currency gave back some of the gains after the ECB distanced itself from those comments.

Later in the day, the BoE Governor Carney is also expected to speak. His comments come ahead of the BoE's monetary policy meeting in the month of May where rates are expected to rise.

Based on the above, today's binary options signal is EURGBP. The currency pair has been gradually extending the declines but we notice that a potential bottom could be forming. Therefore, we are looking to purchase daily CALL options at 0.8722 for a 21:00 GMT expiry time.

With the ECB meeting minutes, the euro currency would be looking to close higher on the day against the British pound.

binary options signal eurgbp 12 apr 2018

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.