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EUR/GBP binary signal - UK Nationwide HPI - 29 Aug 2017

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Expiry Time: 
20:00 GMT
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The UK will be releasing the Nationwide Housing price index data. This is the data that covers the change in the selling prices of homes that are covered by mortgages from the Nationwide building society. According to the median estimates, the housing price index is expected to rise 0.1% on the month. This is significantly slower than the 0.3% increase registered the month before.

Weaker home prices could potentially signify weaker pace of home buying activity. This is in turn partly due to the weaker pace of wage growth. Household income has been squeezed in the UK largely due to stagnating wages and higher consumer prices. As a result, this forward looking indicator could have potential impact on UK markets.

Along with the UK's nationwide housing price index data, the French statistics agency, Insee will also be releasing the quarterly gross domestic product or GDP report for France. Economists expect no change as the third quarter GDP in France is expected to rise 0.5%. This is largely in line with the preliminary estimates.

The Eurozone economy has been on an uptrend, largely driven by higher economic activity in Germany and France. Therefore, combined with the UK's data, today's economic releases could potentially impact the respective currencies.

Alongside, the Brexit talks continue to remain a sore point for the UK, which is yet to begin concrete negotiations on Brexit. Issues like trade and access to the single market system and immigration remain key points alongside matters of jurisdictional rights over the UK from the European Court of Justice.

Based on the above factors, today's binary options trading idea is on EURGBP. The currency pair has regained the momentum as investors are more optimistic in the euro than the British pound.

The EURGBP currency pair continues to trend higher. However, the failure to break past 0.9635 highs marked previously suggests some near term pull back. Therefore, we purchase daily CALL options in EURGBP at 0.9245 as we expect to see EURGBP close higher on the day.

binary options signal eurgbp 29 Aug 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.