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EUR/GBP binary signal - UK Q3 GDP - 25 Oct 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 quarterly advance GDP report today. The report will cover the period of June through September. According to the economists polled, the UK's economy is expected to advance 0.3% on the quarter. On a year over year basis, the annual GDP for the UK is expected to remain steady at 1.5%.

The advance GDP report is of course subject to revisions later in the month. However, the markets will be looking to how the economy performed during the period. Various data show that the UK's economy might have slowed even more. More recently, the construction PMI was seen easing back into contraction while retail sales also decline.

This is expected to show a probably lower than expected GDP during the quarter. The report comes as the Bank of England officials are hoping to raise interest rates as early as November. This interest rate hike comes mostly comes on account of higher inflation. Data showed that consumer prices in the UK rose 3% on the year ending September 2017.

However, wages and spending continue to remain subdued. This comes even as hiring in the UK continues at full speed. The main takeaway has been that while the UK economy has been able to create jobs, the wage growth has remained broadly flat. With inflation pushing strongly higher, this has created a wage and a spending squeeze on the UK households.

A weaker than expected GDP could potentially upset the BoE's plans for a rate hike in November. This could potentially put a lid on further spending and could come at the risk of the UK economy falling into a recession. Meanwhile, the Brexit talks continue in the backdrop but no clear guidelines have been formed yet. Based on the above, today's binary options signal is EURGBP.

The currency pair has been consolidating above 0.8890 support level for the past few weeks. Any downside declines will be limited to 0.8915. Therefore, we are looking to purchase daily CALL options at 0.8915 for a 20:00 GMT expiry time. We expect EURGBP to briefly pullback before closing higher on the day.

binary options signal eurgbp 25 oct 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.