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EUR/USD binary signal - Eurozone flash inflation estimates - 31 May 2018

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Signal details
Entry Price: 
1.1577
Close Price: 
No Trade
Direction: 
High
Expiry Time: 
21:00 GMT
How we trade
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The European statistics agency, Eurostat will be releasing the preliminary or flash inflation estimates today at 10:00 GMT. According to the median estimates, consumer prices in the eurozone are expected to have recovered in the month of May.

Economists forecast that the headline inflation rate increased 1.6% on the year ending May 2018. This marks a rebound in consumer prices which fell sharply over the past few months. Headline inflation was seen easing to 1.2% in the month before.

Core inflation rate, which strips the volatile food and energy prices are forecast to also rebound and rise at a pace of 1.0% on the year ending May 2018. Core inflation rate in the Eurozone fell to lows of 0.7% in April.

The rebound in consumer prices is expected to spark some confidence in the markets. The economic union was hit by weak patch of data in the first quarter and well into the first month of the second quarter. This included weaker exports and a weaker pace of GDP expansion in the three months ending March 2018.

The Eurozone GDP was seen rising just 0.4% on a quarterly basis marking a sharp slowdown after registering a 0.7% increase in the last quarter. Inflation was also seen slipping sharply in the first few months of the year.

Therefore, a better than expected print in inflation, compared to the previous months could bode well for the common currency.

Based on the above, today's binary trading signal is EURUSD. The currency pair was seen posting a rebound by Wednesday's close. However, we expect to see some moderation to the gains as price is likely to pull back.

Therefore, we would consider daily CALL options in EURUSD at 1.1577 for a 21:00 GMT expiry time. We expect to see the currency pair pulling back ahead of closing higher on the day.

binary trading signal eurusd 31 05 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.