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EUR/USD binary signal - Eurozone Final CPI - 18 Sep 2017

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Expiry Time: 
20:00 GMT
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The Eurostat will be releasing the final inflation figures for the Eurozone for the month of August today at 0900 GMT. According to economists polled and based on the flash inflation estimates, headline inflation in the Eurozone is expected to come in at 1.5% on a year over year basis. Core inflation, which strips out the volatile food and energy prices are expected to rise 1.2%. The inflation data shows that headline consumer prices might have accelerated in August, while core inflation remained steady, rising at a pace of 1.2% during the period.

The data is expected to reflect the expectations somewhat and is unlikely to disappoint much. Consumer prices in the Eurozone have been rising steadily in the past few months. This was also acknowledged by various ECB officials. The ECB Governor, Mario Draghi also signaled at the ECB meeting in September earlier that the central bank would announce its tapering decision in October.

The ECB is expected to cut its QE purchases even further, fuelled by the optimism in economic growth and rising inflationary pressures. A disappointment on the inflation data today would only have a short term effect as the markets strongly expect that growth and inflation will accelerate in the eurozone in the coming months.

But the FOMC meeting is coming up this week which would make the risks finely balanced to the Fed's announcement. Furthermore, given the strong gains in the common currency we anticipate some correction in the near term.

Based on the above data, today's binary options trading signal is EURUSD. The currency pair managed to close with some modest gains on Friday. Price action remains strongly consolidating near the top end of the rally for the past week but we could expect to see some near term declines taking shape.

Therefore, we purchase daily PUT options at 1.1926 for a 20:00 GMT expiry time. We expect to see the EURUSD consolidating here and declining in the short term to retest the support level at 1.1882 and thus close lower on the day.

binary options signal eurusd 18 Sep 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.