Sorry, you need to enable JavaScript to visit this website.

EUR/USD binary signal - Fed Gov. Powell Speech - 08 May 2018

You are here

Signal details
Entry Price: 
Close Price: 
No Trade
Expiry Time: 
21:00 GMT
How we trade
5/5 of 6 ratings

The Federal Reserve Governor, Jerome Powell is scheduled to make a speech later today at 08:15 GMT. The speech comes following the FOMC's decision to keep interest rates unchanged at its monetary policy meeting just last week.

Investors will be closely watching the comments from the Fed Governor in order to ascertain the next interest rate hike from the central bank. At the previous FOMC meeting, the central bank maintained a neutral statement indicating that interest rates will rise three more times this year.

On Friday, the payrolls report for April showed that the U.S. unemployment rate fell to 3.9%. This marked a decline in the unemployment rate to a seventeen and a half year low. However, wage growth which is an important component when it comes to inflation expectations was seen to be muted.

The rather sluggish pace of wage growth is seen as neutralizing the faster pace of inflation increase. The most recent inflation data, the core pce price index which is the Fed's preferred gauge of inflation was seen rising to 1.9% in March, up from 1.6% in the previous month. The central bank is targeting an inflation rate of 2.0%.

Faster pace of inflation has stoked concerns that the central bank could hike interest rates at a faster pace than expected. In this context, today's speech by the Federal Reserve Governor could be an important event as far setting the monetary policy expectations for the United States.

Based on the above, today's binary trading signal is EURUSD. The currency pair was seen trading near the major support zone of 1.1960 – 1.1920 level. We expect this support level to hold in the near term.

Therefore, we are looking to purchase daily CALL options at 1.1900 for a 21:00 GMT expiry time. We expect to see the declines stalling in the EURUSD as the currency pair is expected to close higher on the day.

binary options signal eurusd 08 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.