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EUR/USD binary signal - German industrial production - 09 Oct 2017

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Entry Price: 
Close Price: 
Expiry Time: 
20:00 GMT
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The markets open on a slow week on Monday with the Japan, Canadian and the U.S. markets closed on account of the regional bank holidays. Trading is expected to remain muted for the most part. Amid a quiet trading day, the German industrial production numbers stand out. Due for release at 0600 GMT, the economists polled expect to see industrial production in Germany rise 0.9% on the month. This comes after industrial production was flat in the month of July.

The data, coming from the Federal Statistics Office showed that industrial production was unchanged from the previous month which showed a decline of 1.1% on a month over month basis. Excluding energy and construction, industrial production rose just 0.3% in June while the production of intermediary goods rose 1.4%. The biggest downside contributor was the energy prices which fell 4.7% during the month.

This trend is expected to change with the data from August expected to show a rebound. While the industrial production numbers are likely to see a muted reaction, preliminary data suggests that with the German manufacturing and services PMI posting a steady increase, the data for August could show a rebound, and even rise above the estimates.

Considered to be the Eurozone's largest economy, the data is expected to have a significant impact in the long term prospects for the entire region, including potentially affecting the ECB's monetary policy. The Eurozone's economy has been in a steady increase and this is expected to show in the ECB proceeding with its QE tapering plans.

Based on the above, today's forex binary signal is EURUSD. The common currency was seen posting strong gains on Friday after a disappointing payrolls report. However, the rebound off the support level at 1.1688 indicates further upside in prices.

Therefore, we are looking to purchase daily CALL options in EURUSD at 1.1720 for a 20:00 GMT expiry time. We expect the pair to decline on an intraday basis ahead of pushing to close higher on the day.

binary options signal eurusd 09 Oct 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.