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EUR/USD binary signal - German producer price index - 20 Oct 2017

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Expiry Time: 
20:00 GMT
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The German statistics office Destatis will be releasing the monthly producer prices index data today at 06:00 GMT. According to the economists polled, producer prices index are forecast to rise just 0.1% on the month. This is slightly lower than the 0.2% increase seen the month before. On an annual basis, German PPI was seen rising 2.6% on the year in the month of August excluding energy.

The data is likely to show the inflation at the factory gate. Earlier this week, data showed that wholesale prices were seen rising 0.6% on the month which also suggests that prices were picking up pace. This is evidently going to reflect in the consumer price index data.

With Germany being Europe's largest economy, the data is also likely to influence the inflation in the eurozone. This week data confirmed that consumer prices in the eurozone rose 1.5% on the headline and 1.1% on the core. Although headline consumer prices have been rising steadily, core consumer prices remained muted for the most part. It only increased from 0.9% few months ago to the current 1.1%.

However, the ECB has already cautioned that inflation could slow into the end of the year and early next year. This is expected due to some statistical quirks on the inflation data. Regardless, for the moment the PPI data is likely to show ahead of time if there will be any slowdown in consumer prices later in the month for Germany.

Based on the above, today's forex binary signal is EURUSD. The currency pair has been trading stronger for the past few daily sessions. Yesterday, EURUSD managed to recover back to the familiar resistance level of 1.1822. But price action quickly reversed near this level.

Therefore, we are looking to purchase daily PUT options in EURUSD at 1.1822 for a 20:00 GMT expiry time. Following the reversal to the resistance level, we expect the EURUSD to close lower on the day.

binary options signal eurusd 20 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.