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EUR/USD binary signal - ECB Monetary Policy Meeting - 08 Mar 2018

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Entry Price: 
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Expiry Time: 
21:00 GMT
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The European central bank will be meeting this week for its monthly monetary policy meeting. According to the economists polled, the central bank is expected to keep interest rates and the repo rates unchanged at this meeting. The central bank is also expected to vote to keep its asset purchases unchanged at a pace of 30 billion euro at today's meeting.

Following the initial meeting at 12:45 GMT, ECB President Mario Draghi will be hosting a press conference later in the day at 13:30 GMT. The ECB will be releasing its quarterly economic projections as well at this week's meeting.
The markets will be focusing on the ECB's forward guidance. Expectations currently point to a dovish ECB meeting that could impact the euro to the downside.

However, there could be scope for surprises in the euro in the event that officials turn out to be hawkish. The exchange rate of the euro currency has appreciated quite a bit in recent weeks. This could potentially impact the pace of inflation growth in the region.

Consumer prices were seen weakening previously over the past two months as the euro currency was seen surging against a weaker dollar. Yesterday, the final revised GDP for the fourth quarter of 2017 showed an unchanged print. The Eurozone GDP was confirmed rising at a pace of 0.6% in the quarter ending December last year.

This put the Eurozone to confirm that its GDP grew at the fastest pace in over a decade in 2017. However, the market reaction was broadly muted with investors already looking to the first quarter performance.

Based on the above, today's binary options signal is EURUSD. The currency pair has been stubbornly high with any dips bringing in new buyers into the market. However, we expect that this volatility will continue for a while. Therefore, we would purchase daily PUT options at 1.2443 for a 21:00 GMT expiry time.

We expect EURUSD to bounce towards this minor resistance level before closing lower on the day.

binary options signal eurusd 08 mar 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.