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EUR/GBP binary signal - Eurozone final inflation - 19 April 2017

Signal details
Entry Price: 
0.8365
Close Price: 
0.8380
Direction: 
High
Expiry Time: 
20:00 GMT
Result: 
ITM
How we trade
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The European markets will be open today after being closed on Monday and Tuesday. Focus will immediately shift to the current developments in the markets including fresh set of economic releases. Eurostat will be releasing the final inflation figures today for the month of March.

Earlier, preliminary inflation data showed that headline consumer prices in the Eurozone rose at a pace of 1.5%. This was significantly lower compared to the 2% increase registered in February. The core inflation rate which excludes the volatile food and energy prices are also expected to show a slowdown, with preliminary estimates showing that core inflation rose at a pace of 0.7% in March, down from 0.8% increase in February.

The data is expected to confirm the view from the ECB that inflation continues to remain weak and that the previous increase in inflation was mostly due to higher oil prices which sent energy prices higher as a result. Oil prices have been retreating since March and this is evident in the weaker pace of increase in inflation across most of the developed economies.

The inflation report comes ahead of the ECB's monetary policy meeting next week. Besides the inflation report, the latest developments from the UK will also add to the market volatility. The British Prime Minister Theresa May announced yesterday about her intentions to call for a snap election in June.

The news sent the British pound higher as traders expect this political development to result in a smoother transition of the UK's exit with the EU. As a result, the EURGBP is seen vulnerable to the downside on the back of a positive sentiment building up with the British pound.

We recommend EURGBP as the currency pair to trade for today's binary options trading signal. The euro has fallen sharply compared to the British pound yesterday but we expect to see some consolidation taking place. Furthermore, there is scope for a rebound in prices in the near term. Look for EURGBP to close above 0.8365 and then purchase daily CALL options for a 20:00 GMT expiry time.

We expect to see some upside prevailing in EURGBP above 0.8635 as price will likely retrace back to test the resistance level at 0.8600. Establishing resistance at this previously held support level will signal further bearish continuation in prices.

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. He has no business nor personal relationships with any mentioned government entities or stocks. 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.