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EUR/JPY binary signal - Eurozone producer price index data - 06 Nov 2017

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Expiry Time: 
21:00 GMT
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The markets open today on a quiet note. However, economic data from the Eurozone is expected to be released throughout the day. Most of the economic data is confined to the second tier data. Among the host of economic releases, the data today includes the regional services PMI data from France, Spain and Germany.

This culminates with the final services PMI for the month of October. Among the data being released today the Eurozone PPI data will be released at 10:00 GMT. According to the economists polled, the producer prices index is expected to show a 0.4% increase. This is slightly higher than the previous month's 0.3% increase.

The PPI data will be critical as it comes during the time when the flash inflation estimates showed a slowdown in consumer prices. The PPI data which shows inflation at the producers side or factory gate will give early signals on the state of consumer prices coming out later.

Later in the week, the European Commission will be releasing its quarterly forecasts. Inflation was already lowered during the previous quarter and there is a strong chance that consumer prices could be further lowered in the latest quarterly release.

The weakness in the producer prices is expected due to weakness in the energy prices. This was a crucial component as the previous month's inflationary prices turned out stronger than expected. The gains in consumer prices came largely due to a pick up in energy prices.

Today's binary options signal is EURJPY, the pair has been consolidating near the top over the past few weeks. However, price action stalled with minor local lows being formed.

This suggests that EURJPY could be at risk to the downside. Therefore, we would purchase daily PUT options in EURJPY at 132.50 for 21:00 GMT expiry time. We expect the currency pair to attempt retracing back to the near term resistance level at 132.50 following which EURJPY could be seen closing lower on the day.

binary options signal eurjpy 06 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.