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EUR/USD binary signal - ECB Monetary policy meeting - 27 April 2017

Signal details
Entry Price: 
1.0900
Close Price: 
1.0874
Direction: 
Low
Expiry Time: 
20:00 GMT
Result: 
ITM
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The European Central Bank will be holding its monthly monetary policy meeting today at Frankfurt. No major changes are expected from the central bank which is widely expected to leave the interest rates and the deposit rates untouched, while also maintaining the monthly asset purchases.

It could be a volatile day for the markets, if not for the euro currency at the very least. A lot has changed since the ECB's meeting in March. Political developments in France alongside the economic recovery and the slow pace of inflation will be some of the themes that will weigh on the ECB President Mario Draghi later today.

In March, inflation in the Eurozone was recorded at 2%, but since then, consumer prices slipped to 1.5%. Even the Core CPI was seen lower from 0.9% to 0.7%, something which the ECB President is likely to highlight.

Therefore, there is a very good chance that the ECB meeting today will see a slightly dovish tone from the policy makers. Even the meeting minutes from March, which saw the ECB coming out slightly hawkish was met with doubts as officials were concerned on whether they were sending out the wrong message to the markets.

Investors are however hopeful to hear from the ECB officials about the potential tapering from the current asset purchases. The ECB president Draghi had already mentioned that the unwinding of the ECB's QE will involve a tapering of the QE and the timeline for this is what could be potentially driving the markets. For the moment, expectations are high that the ECB could look at tightening its monetary policy by 2018.

EURUSD has posted strong gains this week and it is likely time for a correction. The technical charts indicate a possible decline towards 1.0750. Therefore, for today's binary trading signal, we recommend daily PUT options in EURUSD at 1.0900 for a 20:00 GMT expiry time as we expect to see a weaker close in EURUSD today.

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. He has no business nor personal relationships with any mentioned government entities or stocks. 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.