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EUR/GBP binary signal - UK Final GDP - 30 Jun 2017

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Entry Price: 
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Expiry Time: 
20:00 GMT
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The final gross domestic product for the UK for the quarter ending March 2017 will be released by the UK's Office for National Statistics (ONS) today at 0830 GMT. According to economists polled, the final GDP is expected to rise 0.2% on the quarter, unchanged from the second estimate.

Earlier, the UK's GDP was revised down to 0.2% from the initial estimates of 0.3%. This was the weakest quarterly GDP growth. The decline came on account of consumer focused industries including retail and accommodation fell sharply.

Household spending also slowed significantly on account of rising consumer prices. Even the construction and manufacturing sector showed an all round decline in activity and growth. The decline was expected and growth was already forecast to slowdown ever since the UK voted to leave the EU.

Due to the uncertainty following this referendum, the economic activity slowed. This was heightened by the fact that investors were cautious in terms of putting money in the UK. At the same time, the British pound was also seen weakening significantly, especially against the U.S. dollar and the euro.

The weaker exchange rate, although initially saw retail sales rising due to cheap prices eventually saw prices rising steadily as a result. This led to the consumer prices increasing sharply, but wages remained stagnant. As a result, UK households were starting to feel the pinch and consumer spending was slowing as a result.

Today's GDP report covers the first three months of the year. Therefore it is unlikely to impact the markets much. Based on the above, today's binary options trading signal is of course EURGBP.

Both the euro and the British pound have been trading higher on account of hawkish statements from the respective central banking chiefs. As a result, EURGBP could be experiencing volatility. In the near term, we expect EURGBP to rise towards 0.8813 resistance, thus warranting CALL options.

We would purchase daily CALL options at 0.8770, for a 20:00 GMT expiry time. Following yesterday's close, we expect EURGBP to attempt to retrace the losses, therefore, we expect EURGBP to close higher on the day.

binary options signal eurgbp 30 Jun 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.