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EUR/JPY binary signal - Eurozone final inflation - 16 Nov 2017

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Entry Price: 
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Expiry Time: 
21:00 GMT
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The European Statistics agency, Eurostat will be releasing the final inflation figures for the month of October today at 10:00 GMT. According to the economists polled and the previously released flash estimates, consumer prices in the Eurozone are forecast to have eased in October.

Flash inflation estimates showed that headline consumer prices in the Eurozone rose 1.4% at an annual rate in October. This is slower than the 1.5% increase that was seen in the previous month. Core inflation rate also showed a decline, rising just 0.9% on an annual basis in September. This was a weaker pace of increase in the core inflation rate compared to the previous month.

The decline in consumer prices are expected on account of weaker energy prices. However, the ECB officials and other agencies such as the EU Commission have already signaled that consumer prices could weaken towards the end of this year and by early next year. Consumer prices in the Eurozone remain far off from the ECB's target of 2.0%.

The markets were previously expecting an early winding down of the ECB's QE program. Although the central bank cut its QE purchases by half it extended the bond purchase program by nearly nine months. The central bank also maintains that QE remains open and that the central bank could expand its purchases if need be.

Consumer prices remain the weak line in the Eurozone for now. Latest GDP reports showed that robust growth is expected to continue in the region with a pickup in momentum seen by next year.

Based on the above, today's binary options signal is EURJPY. The currency pair closed on a bearish note yesterday and is currently attempting to make a pullback. Short term resistance is seen at 133.17 where the gains will be limited.

Therefore, we purchase daily PUT options in EURJPY at 133.17 for a 21:00 GMT expiry time. We expect EURJPY reverse the gains and close lower on the day.

binary options signal EURJPY 16 Nov 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.