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EUR/GBP binary signal - German election results - 25 Sep 2017

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Signal details
Entry Price: 
Close Price: 
No Trade
Expiry Time: 
20:00 GMT
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Germany, the eurozone's largest economy held elections over the weekend. With the results being announced, the incumbent, Ms. Angela Merkel's CDU/CSU party maintained its lead and is poised to take up another term. The election results were widely in line with expectations. However, the small fringe parties were seen making solid progress which continues to pose a risk to the Eurozone.

So far, although the center led coalition has remained strongly in place in Europe, the rise of the far-right and anti EU skeptic parties has continued to increase. This was already pointed out by the ECB President Draghi who last week in a speech said that youth unemployment needs to be addressed in order to curb the rise of populist parties that could potentially threaten to break up the eurozone.

The markets did not react much to the German election result as it was as expected. However, now that the ECB's meeting and the German elections are done with, traders will likely focus onto the monetary policy.

Amid a slow trading day, a number of central bankers will be speaking today. It includes the ECB president Mario Draghi and a number of FOMC members. The Fed speeches will be important as it comes right after last week's FOMC meeting where the central bank signaled that it could hike rates one more time.

Based on the above, today's binary options signal is EURGBP. The currency pair attempted to post a recovery last week but trading was subdued. This was after EURGBP posted sharp declines two weeks ago. Price action remains caught within the range of 0.8870 - 0.8794 levels.

We therefore would be purchasing daily CALL options at 0.8832 for a 20:00 GMT expiry time. The euro is likely to post a recovery against the British pound which is likely to be affected by the Brexit theme. EURGBP could potentially be posting a rebound and could be seen closing higher on the day.

binary options signal eurgbp 25 Sep 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.