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EUR/GBP binary signal - UK inflation - 13 June 2017

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Signal details
Entry Price: 
Close Price: 
Expiry Time: 
20:00 GMT
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The UK's Office for National Statistics will be releasing the monthly inflation report. According to the economists polled inflation in the UK is forecast to rise 2.7%, the same pace as the month before on a year over year basis. The data will be released at 0830 GMT.

Core inflation is expected to rise 2.3%, this is slightly below the 2.4% increase registered in the previous month. Inflation in the UK has remained consistently above the Bank of England's 2% inflation target rate for the past three months. Inflation rose 2.7% in the previous month. Most of the gains continued to come on account of higher energy prices. The inflation data comes out ahead of the BoE's meeting later this week on Thursday and the data is expected to play an influence on the BoE's meeting although no changes to interest rates are expected.

While the inflation data will play a minor role, the main issue will be the ongoing politics in the UK. The continued uncertainty in the political landscape is now expected to even delay the scheduled Brexit talks due on June 19. In this back drop, the British pound is expected to remain volatile.

Based on the above factors, the trade recommendation for today is EURGBP. The British pound has managed to weaken against the euro on account of the possible delay to Brexit and the uncertainty. A better than expected inflation figures will only influence the British pound to a certain extent.

With the gains in EURGBP, we can now expect to see some retracement in the near term. Therefore, for today's binary options trading signal, our recommendation is to purchase daily PUT options for a 20:00 GMT expiry time.

EURGBP has so far rallied towards 0.8850. Minor support is seen at 0.8838 where daily PUT options can be purchased as we expect to see EURGBP post declines towards the end of 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. 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.