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EUR/USD binary signal - Powell Testimony - 27 Feb 2018

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21:00 GMT
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The new governor of the Federal Reserve, Jerome Powell will be giving his first testimony to the U.S. House select committee on financial services. This is part of the semi-annual testimony that the Fed governor gives to the committee. Although it has hardly been one month since Powell took office and has not yet officially held any monetary policy meeting, the testimony will give the markets further insights into the Fed's forward guidance.

The testimony is scheduled for 13:30 GMT today and also comes amid a host of other economic releases that are due for the day. This includes the durable goods orders report which is broadly expected to remain weak. Headline durable goods orders are forecast to fall 2.4% on the month, reversing most of the gains from the previous month.
Core durable goods orders are forecast to rise just 0.4% following the previous month's increase of 0.7%.

Overall, the economic data and Powell's testimony will bring some volatility to the U.S. dollar. Powell's testimony comes ahead of the crucial March FOMC meeting due later during the month. According to the futures markets, the probability for a Fed rate hike has increased strongly.

The markets currently expect the Fed to hike interest rates by 25 basis points at the March meeting as policy makers are also expected to give fresh forecasts on the U.S. economy. In this aspect, Powell's views on monetary policy and the economy will be widely regarded as an endorsement of the future policy actions from the Chairman.

Based on the above, today's binary signal is EURUSD. The currency pair attempted to push higher on Monday but failure to do so saw the currency pair closing almost flat on the day. Therefore, we are looking to purchase daily PUT options at 1.2300 for 21:00 GMT expiry time as we expect the EURUSD to close lower on the day.

binary options signal eurusd 27 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. 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.