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EUR/JPY binary signal - Eurozone Final inflation - 15 Jun 2018

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Signal details
Entry Price: 
128.00
Close Price: 
128.41
Direction: 
High
Expiry Time: 
21:00 GMT
Result: 
ITM
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The final inflation figures for the Eurozone will be released today at 10:00 GMT by the European Statistics agency, Eurostat. The data covers the month of May. According to the economists polled and based on the flash estimates, consumer prices are expected to rise.

Data from the preliminary inflation report showed that headline consumer prices in the Eurozone increased sharply at the pace of 1.9%. This marks the highest level of inflation and just a percentage point below the ECB's 2% inflation target rate. The Eurozone's core inflation rate which excludes the volatile food and energy prices are expected to be higher as well.

Core CPI in the Eurozone is expected to rise 1.1%. Although this marks a modest pace of increase, core CPI in the Eurozone had decline in the early part of this year raising concerns of whether price pressures will maintain momentum or not.

The inflation data is an important report for the market as investors assess the state of inflation in the back of the ECB's monetary policy meeting. The European central bank held its monetary policy meeting on Thursday where it signaled that it would continue with its current pace of bond purchases until September 2018.

The central bank further announced that it would continue bond purchases until December but at a reduced pace of 15 billion euro before ending QE in December 2018.

The central bank also signaled that interest rates will not be changing any time soon, indicating that the central bank would continue to remain cautious on the Eurozone monetary policy.

Today's trading signal is EURJPY, the currency pair has been posting strong declines over the week as price approached the support level at 127.96. In the short term, we expect to see a rebound in prices and EURJPY to eventually close higher on the day.

eurjpy signal 15 jun 2018

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. He has no business nor personal relationships with any mentioned government entities or stocks. 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.