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EUR/USD binary signal - Jackson Hole Symposium - 25 Aug 2017

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Expiry Time: 
20:00 GMT
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The annual Jackson Hole Symposium began this week on Thursday. However, some of the more important speeches are lined up for today. Among the members expected to speak include the Fed Chair Janet Yellen and the ECB President Mario Draghi.

The Jackson Hole Symposium is an annual event where the heads of various central banks across the world converge. The event is usually synonymous with policy makers announcing their plans ahead of time. Therefore, the markets will be closely paying attention to what the central bank heads have to say.

In this regards, the markets could react with increased volatility as a result. The Fed Chair Yellen is expected to talk more about the Fed's plans for a rate hike. Given the weakness in the U.S. consumer prices, the markets have scaled down their bullish bets for another rate hike this year. However, there is still a chance that the Fed could continue with another rate hike this year.

Meanwhile, from the ECB president, the markets will be looking to see whether Draghi will announce some plans ahead of the September ECB meeting. The Eurozone economic data has been broadly positive and has been exhibiting above trend growth in recent few quarters. This has fueled speculation that the ECB will announce another taper to its QE program ahead of the QE purchases running out in December.

Still, with the German elections coming up in September, there is a possibility that the ECB will do nothing. Either ways, we can expect to see some market reaction.

Based on the above, today's binary options trading recommendation is EURUSD, which we expect will remain volatile on the back of speeches from both the ECB and the Federal Reserve heads.

The EURUSD has remained largely flat in yesterday's trading but this could change. The technical outlook shows some near term upside in EURUSD. Therefore we purchase daily CALL options in EURUSD at 1.1800 for a 20:00 GMT expiry time. We expect to see the common currency push above to close higher on the day.

binary options signal eurusd 25 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.