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EUR/USD binary signal - Eurozone final inflation report - 16 Mar 2018

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Signal details
Entry Price: 
1.2321
Close Price: 
1.2287
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
ITM
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The final inflation report for the eurozone is expected to be released today by the European Statistics agency, Eurostat at 10:00 GMT. According to the economists polled, the final headline CPI for February is expected to remain steady at 1.2% reflecting the flash estimates released previously.

Core inflation rate is expected to be confirmed rising 1.0% on an annual basis in February, compared to the year ago. This marks no major changes from the previously released flash estimates. With investors gearing up for the ECB to begin scaling back its QE operations and heading toward a path of monetary policy normalization, the inflation data could potentially put a dent to those plans.

Previously, core CPI which holds more importance for the ECB officials had eased, rising at a pace of just 0.9%. However, the February's data could offer some slight encouragement for the central bank officials. Still, consumer prices are only half way there as the ECB targets a 2% inflation rate.

Despite a hawkish ECB statement last week, central bank officials still remained guarded with the ECB President Mario Draghi noting that the central bank was still ready to increase its QE purchases and extend the time if the economic conditions deteriorated. Draghi reiterated this as the central bank removed the easing bias from its monetary policy statement.

The same was conveyed over the week where Draghi spoke at a conference hosted by the ECB. Draghi said that officials would remain patient and persistent to ensure that inflation picked up. Draghi cited the global trade uncertainty alongside the higher exchange rate of the euro that could impact inflation as two key risks.

Today's binary signal is EURUSD, the currency pair was seen falling back below the main resistance level of 1.2333. In the near term we expect to see a pullback in the currency pair.

Therefore, we are looking to purchase daily PUT options in EURUSD at 1.2321 for a 21:00 GMT expiry time as we expect to see the currency pair resume the declines to close lower on the day.

binary options signal eurusd 16 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. 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.