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EUR/GBP binary signal - Manufacturing production - 09 June 2017

Signal details
Entry Price: 
0.8764
Close Price: 
0.8792
Direction: 
High
Expiry Time: 
20:00 GMT
Result: 
ITM
How we trade
5/5 of 3 ratings

The UK's manufacturing production is due for release today at 0830 GMT. The data is forecast to show that manufacturing production might have increased 0.8% in April. This follow's March's disappointing data which showed that production declined 0.6%. The data will be released by the UK's Office of National Statistics (ONS).

In March, the index of production increased 0.1% with a 0.3% increase in manufacturing followed by a 1.8% increase in mining and quarrying. The gains were however wiped out by a decline of 4.3% increase in the energy sector.

On a month over month basis, manufacturing production was down, led sharply by the declinee in the energy supply. On a year over year basis, this came to 1.4% with manufacturing offering the biggest contribution, rising 2.3% on the year.

The data today is unlikely to impact the British pound much where the political landcape is likely to dictate the price action in the markets. The UK held the general election yesterday with the results coming out late in the night.

After a majority of counting of votes was done, officials estimate that the UK's Conservative party failed to get the majority it was hoping for. Although results are yet to be finalized, it is starting to get increasingly clear that the UK could be heading for a hung parliament. This will very likely increase the uncertainty in the British pound.

The Brexit negotiations are expected to start on June 19 and the current political landscape is likely to cloud the path ahead in the near term.

The market response was evident in the EURGBP which has now rallied to a fresh 3-month high. Although price action is seen consolidating in the near term, the bias remains to the upside. Therefore, for today's binary options signal, we recommend daily CALL options in EURGBP at 0.8764 for 20:00 GMT expiry time.

With still a bit more votes left to count, the EURGBP has scope to rise, making EURGBP CALL options ideal at 0.8764, as price action is likely to rise for the rest of the day.

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.