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EUR/USD binary signal - German Bundesbank monthly report - 21 Aug 2017

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Entry Price: 
Close Price: 
Expiry Time: 
20:00 GMT
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The economic calendar today is very light with no major market moving events scheduled. As a result, the German Bundesbank (the central bank of Germany) event will be the main point of focus for traders. The monthly Bundesbank reports do not generally see any major impact on the currency markets. Still, with no other events lined up this could be an interesting event to look out for.

The Bundesbank's report is due to be released at 10:00 GMT. It is quite likely that the report will shed light on the recent economic developments from Germany. Just last week, fresh economic data showed that the second quarter gross domestic product (GDP) rose 0.6% in the three months ending June.

The Q2 GDP was slightly lower than the forecasts of 0.7%. However, Q1 GDP data was revised higher from 0.6% to 0.7%. On a year over year basis, German GDP growth has accelerated to 2.1% on a workday adjusted basis. However, forecasts from the European Central Bank, and the European statistics agency, Eurostat say that German GDP growth could accelerate to 3% on an annual basis within the next quarter or by the end of the year.

Given the above, the German Bundesbank report could shed more light on the economic activity in Eurozone's leading economy. While this will not directly impact the markets, there is a strong chance that the positive data could feed into the bigger picture.

The ECB is expected to announce another tapering to its QE policy when it meets in September. Thus, a positive report from the Bundesbank could reinforce this view among the ECB's governing council.

Based on the above, today's binary options trade recommendation is EURUSD. The currency pair has turned flat after posting a stellar rally in the past few months. However, the bullish momentum is showing signs of stalling. On Friday, price action formed an inside bar which would suggest a near term decline.

Therefore, we purchase daily PUT options for a 20:00 GMT expiry time at 1.1750 where resistance will keep the gains in the EURUSD in check. We expect to see a near term rally to 1.1750 before the currency pair is expected to close lower on the day.

binary options signal eurusd 21 Aug 2017

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.