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EUR/USD binary signal - ECB Monetary policy meeting - 07 Sep 2017

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Expiry Time: 
20:00 GMT
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The European Central Bank will be holding its monetary policy meeting today. The ECB is expected to announce its monetary policy statement at 11:45 GMT followed by a press conference at 12:30 GMT. Today's ECB meeting is a widely anticipated meeting and could potentially bring about a lot of volatility to the markets.

The markets are currently pricing in the expectations that the ECB will signal a tapering to its QE purchase program following the upbeat recovery in the Eurozone's economy. Inflation has also continued to increase with the latest flash inflation estimates showing a 1.5% increase on headline inflation.

However, there is speculation that the ECB could potentially push the decision to taper its QE program to later in October this year. This is due to the fact that inflation continues to remain below the ECB's 2% inflation target rate. Various ECB officials from the governing council also expressed their views that a premature tightening to monetary policy could potentially wreck havoc to the years of work done.

As a result of this, there is a potential for the ECB to finely balance its monetary policy statement. Most of the impact will come from the ECB's press conference. The ECB president Mario Draghi is also expected to address the issue of the exchange rate for the euro.

Although the common currency is said to be nearing its fair value, the fact remains that a stronger exchange rate could potentially hamper the economic recovery in the Eurozone. As a result of this, the risks from the monetary policy are quite balanced and the outcome could be in any direction.

Based on the above factors, today's binary options signal is EURUSD. The common currency continues to edge higher and support has been established at 1.1882. Resistance is seen at 1.1936 which could be the near term target.

Therefore, we are looking to purchase daily PUT options at 1.2000 for a 20:00 GMT expiry time. We expect the EURUSD to push higher towards 1.2000 following which we expect the common currency to decline and close lower on the day.

binary options signal 07 Sep 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.