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EUR/USD binary signal - ISM Manufacturing PMI - 01 Feb 2018

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Signal details
Entry Price: 
1.2448
Close Price: 
1.2514
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
OTM
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5/5 of 5 ratings

The Institute of Supply Management (ISM) will be releasing the monthly PMI numbers for the manufacturing sector in the U.S. today at 15:00 GMT. According to the economists polled, manufacturing PMI is expected to moderate to around 59.0 for January. This is somewhat slower than the December's increase to 59.7.

Besides the ISM's manufacturing PMI, Markit will also be releasing the final manufacturing PMI data for the U.S. Flash manufacturing PMI estimates from Markit shows that the sector was stable, at 55.5 and is expected to remain steady for January.

In December, ISM's manufacturing data showed a strong improvement as it beat estimates. The data underlined the increased activity in the sector which came on optimism of the President Trump's policies that also included the tax cuts on the corporate side. Construction activity also boosted the PMI as the U.S. economy witnessed a strong advance in the construction spending during the month.

Data showed that construction activity rose 0.8% on the month. The manufacturing PMI forms an important gauge for the Fed officials as it is a forward looking indicator. Despite the fact that the economists expect a slower pace of activity in the index, a reading above 50 indicates expansion in the sector.

This is expected to be positive for the GDP development and could suggest that the U.S. economy was continuing to move along at a steady pace. Last week, data from the U.S. showed that the GDP expansion came out slightly weaker than expected. Despite the actual data missing estimates, the overall GDP data for the U.S. was seen to be faring better than compared to the year ago.

Today's binary options signal is EURUSD, the currency pair has turned flat above the 1.2400 level following the strong rally. This indicates the potential for a correction in the short term.

Therefore, we are looking to purchase daily PUT options at 1.2448 for a 21:00 GMT expiry time. We expect EURUSD to attempt a rally to the upside before reversing the trend and closing lower on the day.

binary options signal eurusd 01 Feb 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. He has no business nor personal relationships with any mentioned government entities or stocks. 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.