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EUR/GBP binary signal - Germany Preliminary CPI - 30 Apr 2018

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Signal details
Entry Price: 
0.8770
Close Price: 
0.8772
Direction: 
High
Expiry Time: 
21:00 GMT
Result: 
ITM
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Economic data from the Eurozone today will see the release of the preliminary inflation data from Germany. The data, which will be released by the German statistics agency, Destatis is forecast to show a 0.1% decline in consumer prices for the month of April.

Previously, German inflation was seen rising 1.6% on an annual basis in March, after inflation fell to a 14-month low at 1.4% the month before in February. Consumer prices were seen rising at a faster pace in the month of March.
The gains came amid a broad based increase in all sectors including services, energy and food. The inflation data for March showed that consumer prices increased 0.4% on a month over month basis.

For the month of April, the preliminary inflation report is expected to show a strong slowdown in the increase in consumer prices. This is expected as the euro currency has been shown to have steadily increased over the month. The higher exchange rate was seen already hurting the German exports sector which had showed strong slowdown in the month of March.

A weaker inflation growth is likely to keep the euro gains in check against some currencies. This is likely as last week's ECB monetary policy meeting showed that officials were somewhat concerned on the slowdown in inflation among other economic indicators.

Today's binary signal is EURGBP, the currency pair was seen posting strong gains on Friday. The gains came amid the British pound posting strong declines after the UK's GDP report disappointed. The strong gains on Friday are likely to see a potential correction in the short term although the overall trend remains to the upside.

Therefore, we are looking to purchase daily CALL options in EURGBP at 0.8770 for a 21:00 GMT expiry time. We expect to see the EURGBP pullback modestly before closing higher on the day.

binary options signal eurgbp 30 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. 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.