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EUR/JPY binary signal - ECB Draghi's speech - 07 Dec 2017

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Signal details
Entry Price: 
Close Price: 
No trade
Expiry Time: 
21:00 GMT
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Mario Draghi, the president of the European Central Bank is expected to speak today at 16:00 GMT. The speech comes as Draghi holds a press conference at the Bank for International Settlements (BIS) in Frankfurt.

Draghi speech comes about a week ahead of the ECB's next monetary policy meeting and the last meeting for this year. Given that the ECB cut its QE purchases in October, the December ECB meeting is unlikely to spring any surprises. However, Draghi's speech could potentially outline what the markets can expect from the ECB at this month's monetary policy meeting.

Recently, data from the Eurozone showed that inflation in the region remained weak. Core inflation rate was seen unchanged at 0.9% according to the flash estimates. This comes after core inflation briefly rose to 1.2% before easing back. Draghi is likely to address the issue of inflation which could see some dovish talk for the euro currency.

Besides the ECB President's speech, earlier in the data, economic data will see the release of the German industrial production figures. According to the economists polled, German industrial production is expected to rise 1.0% on the month. This comes after previous month's data showed a 1.6% decline. Combined, the German industrial production and the ECB president's speech will potentially keep the euro currency volatile.

The Eurozone's final GDP revision for the third quarter will also be released today. No changes are expected as the Q3 GDP is expected to show a 0.6% increase on a quarterly basis, unchanged from the previous estimates.

Based on the above, today's binary options signal is EURJPY. The currency pair has been posting a strong consolidation with declines coming over the past few days. However, we expect to see some correction in the short term.

Therefore, we would purchase daily CALL options in EURJPY at 132.53 for a 21:00 GMT expiry time. Following the modest decline to this support, we expect EURJPY to close higher on the day.

binary options signal eurjpy 07 Dec 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.