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EUR/USD binary signal - Eurozone inflation data - 16 May 2018

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Expiry Time: 
21:00 GMT
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The final inflation figures for the Eurozone will be released today at 0900 GMT by the European Statistics agency, Eurostat. According to the economists' polled and the initially released flash inflation estimates, the expectations are for headline inflation to rise 1.2%. Core inflation rate is forecast to rise 0.7%.

The data suggests that while headline inflation might have increased somewhat modestly, core inflation has been easing. This is likely to put breaks on the ECB's plans for an exit from the QE program and its plans to head towards policy normalization.

Economic data yesterday showed that the Eurozone's first quarter GDP was unchanged at 0.4%. However, German GDP growth was seen to have increased just 0.3% in the first quarter.

Following the release of the inflation data, the ECB President Mario Draghi is scheduled to speak a few hours later. Draghi will be speaking at 12:00 GMT at an ECB held event in Frankfurt. While it is uncertain whether Draghi will address the economic situation, traders will be closely watching the event.

The downtick in inflation is likely to keep ECB policymakers on the back foot and we could expect to see some cautious remarks. This could potentially keep the euro currency subdued as a result. Data from the United States is also expected today which includes the housing starts and industrial production figures.

Based on the above, today's binary trading signal is EURUSD. The currency pair posted strong losses on the day on Tuesday as price fell back to the previous lows below 1.1830. The declines could however signal a near term correction.

Therefore, we are looking to purchase daily CALL options at 1.1800 for a 21:00 GMT expiry time. Following the retest to the previous lows, we expect the EURUSD to post a correction and close higher on the day.

binary options signal 16 may 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.