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EUR/JPY binary signal - U.S. Preliminary GDP Report - 26 Jan 2018

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Expiry Time: 
21:00 GMT
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The preliminary or advance GDP report from the U.S. will be released today at 13:30 GMT. The data will cover the fourth quarter of 2017 and will over a comprehensive view of how the U.S. economy performed during the year.

According to the economists polled, the U.S. economy is expected to have advanced at a rate of 3.0% during the fourth quarter. This marks a slower pace of increase compared to the previous quarter. The U.S. economy posted a 3.2% increase during the third quarter by the final GDP revision.

Despite the fourth quarter data expected to be weaker, the U.S. economy is expected to close the year 2017 on a strong note. Further revisions in the coming weeks could also see the GDP revisions coming out potentially higher.
Along with the GDP data, the durable goods orders will be released at the same time.

Economists expect that the durable goods rose 0.9% on the month in December. This marks a slower than expected expansion. In the previous month, durable goods orders advanced 1.3%. Core durable goods orders are forecast to rise 0.5%, reversing the 0.1% declines seen the month before.

The USD is likely to remain volatile today as both the data points could potentially see some shift in the sentiment. The data also comes ahead of the FOMC meeting. While no changes are expected to the interest rates, the U.S. Federal Reserve could give an upbeat assessment at the next meeting. This could potentially prepare the markets for the three rate hikes that the Fed has forecasted for this year.

Based on the above, today's forex binary signal is EURJPY. The currency pair reversed the recent declines and is seen trading back near the resistance level that was formed. This potentially suggests a top being formed.

With the euro likely to turn weaker in the near term, we would purchase daily PUT options at 135.90 for a 21:00 GMT expiry time. We expect to see the currency pair give up the gains and close lower on the day.

binary options signal eurjpy 26 jan 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. 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.