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EUR/GBP binary signal - UK Jobs Report - 12 Jul 2017

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Expiry Time: 
20:00 GMT
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The UK's Office for National Statistics (ONS) will be releasing the monthly labor market statistics today at 0830 GMT. According to the economists polled, the UK's average earnings index or wages are expected to rise 1.8%.

This is slower than 2.1% gains seen previously and marks a continued to slowdown in the pace of wage growth. Wages in the UK have been steadily falling over the past four months, from 2.6% to 2.1% a month ago. Further deterioration in the pace of wage growth could potentially impact the British pound even further.

The UK's unemployment rate is expected to remain steady at 4.6%, which is already at a historical low. The claimant count change or the number of people out of job seeking benefits is expected to rise 10.5k.

Today's labor market data will be important for the officials at the Bank of England who are contemplating hiking interest rates. The forward guidance as given by various BoE officials over the past weeks, including the BoE Governor, Mark Carney was largely due to inflation overshooting the BoE's 2% target.

Some officials suggest that inflation could rise as much as 3%, pushing it one full percentage point above the BoE's inflation target rate. As a result, hiking interest rates has been suggested by some of the BoE's monetary policy committee members.

Based on the above, our preferred binary options trading recommendation for today is the EURGBP. The currency pair has been trading flat and broke out from the range of 0.8855 and 0.8840, yesterday. This bullish price action saw EURGBP rising to a fresh 8-month high as a result.

On the intraday charts we notice that there is a potential for a pullback in the near term. Therefore, we purchase daily PUT options at 0.8925 for a 20:00 GMT expiry time. We expect to see EURGBP to decline below 0.8925 and close lower on the day.

binary options signal eurgbp 12 Jul 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.