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EUR/USD binary signal - German Producer Prices Index - 20 Nov 2017

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21:00 GMT
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The German statistics office, Destatis will be releasing the monthly producer prices index data today at 0700 GMT. According to the economists polled, producer prices in Germany are forecast to rise 0.1% for the month ending October. This is a slower pace of increase compared to September's 0.3% increase on the month. On a year over year basis, German PPI is expected to slow, rising at a pace of 2.5% forecast compared to 3.1% increase seen on a year over year basis in September.

The PPI data is likely to signal that inflation in Germany could slow in the coming months. As widely expected, consumer prices in the Eurozone were seen declining last month. The headline CPI was registered at 1.4% while core CPI rose just 0.9%.

The slowdown in inflation, especially from Germany is however unlikely to worry the markets. Weaker energy prices were partly attributed to this decline. On the other hand, stronger than expected labor market developments are expected to eventually push the CPI higher.

Inflation has been the only exception for the Eurozone which has been enjoying a strong spell of an economic rebound. Data last week showed that the economic activity picked up pace across the Eurozone with Germany's growth numbers coming out stronger than expected. As a result, today's PPI data, even if it comes out weaker is not expected to see any major impact on the markets.

Based on the above, today's binary options signal is EURUSD. The currency pair touched a 4-week high last week before pulling back by the close of business. With the EURUSD opening on a weaker note this morning, we would purchase daily PUT options at 1.1760.

We expect EURUSD to post a minor pullback to this breached short term support where resistance could now be formed. After this pullback we expect EURUSD to close lower on the day.

binary options signal EURUSD 20 Nov 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.