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EUR/GBP binary signal - PM May Speech - 22 Sep 2017

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Signal details
Entry Price: 
Close Price: 
Expiry Time: 
20:00 GMT
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The UK Prime Minister, Theresa May will be speaking today as she delivers her Brexit speech to the UK Parliament. This will be an important event as the Brexit threat continues to remain an existential threat. So far, UK officials have been unable to negotiate any concrete deal with the UK.

The EU officials have maintained a strong stance the UK will have to first come up with a Brexit bill that the UK will need to pay to the EU before any further details of the Brexit negotiation can continue. The UK is expected to present a Brexit bill of 40 billion. However, EU officials have maintained that they will not take anything less than 60 billion. No matter what the bill, officials will need to approve the Brexit bill in the UK parliament.

Besides the UK PM May's speech, other main important event of the day will be the speech from the ECB President Mario Draghi. Both these events will keep the EURGBP volatile today, which is also the recommended binary options trading signal for the day.

The ECB president, Mario Draghi spoke earlier this week on Thursday but refrained from making many major announces in regards to the exchange rate or monetary policy. The ECB President Draghi will be speaking first, followed by a speech from the UK Prime minister.

The EURGBP currency pair was seen weakening yesterday on the back of the FOMC meeting. The currency pair gave up the gains as a result and slipped lower on the day. The EURGBP closed bearish as a result, falling back to Monday's open.

The declines came as the euro was seen falling strongly against the GBP last week as the Bank of England left interest rates unchanged. The BoE later signaled that interest rates will be hiked in the coming months. However, the BoE changed its stance later by stating that Brexit will remain a key risk for the markets.

Based on the above, we are looking to purchase daily CALL options in EURGBP at 0.8810 for a 20:00 GMT expiry time. We expect EURGBP to post a recovery, following which we expect the currency pair to close higher on the day.

binary options signal eurgbp 22 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.