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EUR/USD binary signal - Eurozone current account - 19 May 2017

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Expiry Time: 
20:00 GMT
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The Eurozone current account surplus data is due for release today at 0900 GMT by the European Central Bank. The median consensus of economists polled expects the current account surplus to rise 32.3 billion which is lower than the 37.9 billion that was posted for March 2017.

In March, the current account surplus posted a record high which equaled to 3.4% of the eurozone's gross domestic product (GDP). It was higher than 3.2% growth in surplus that was recorded the year before.
The current account surplus is an account balance which measures an economy's international financial position in terms of trade. There is a possibility that today's current account surplus numbers could beat estimates and rise even higher.

This is because data released earlier this week showed that the 19-member eurozone's trade balance rose 30.9 billion. This came as exports rose 13% while imports increased 14% compared to the same period a year ago in March 2017. In the previous year, trade balance was registered at 28.2 billion.

Economic data from the eurozone has been steadily rising over the past few months with a clear uptick seen in growth and inflation. This has boded well for the euro currency which was previously hit by easy monetary policy and both economic and political headwinds.

The EURUSD posted one of the most bullish rallies this week as price touched a fresh 6-month high before retreating to close on a bearish note yesterday. We expect to see EURUSD to potentially close lower into Friday's closing session as the U.S. dollar is likely to maintain the gains made from yesterday.

Considering the above, today's binary options trade signal recommendation is to purchase daily PUT options in EURUSD. We expect a modest rebound in the EURUSD on an intraday basis, but beyond that, the common currency is likely to scale back its bullishness today. Watch for EURUSD to rebound towards 1.1120 where daily PUT options can be purchased for a 20:00 GMT expiry time.

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.