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EUR/USD binary signal - Preliminary GDP Release - 02 May 2018

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Expiry Time: 
21:00 GMT
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The European Statistics agency will be releasing the preliminary GDP data for the Eurozone today. Economists forecast that the Eurozone GDP advanced 0.4% in the first three months of the year. This marks a slower pace of GDP growth compared to 0.6% increase in the final three months of last year. The Eurozone GDP will be released at 0900 GMT today.

The slower pace of GDP increase has been visibly noticeable with a slow down seen in Germany, the Eurozone's largest economy. Weighed by the global trade uncertainty and a higher exchange rate, Germany as well as the Eurozone's trade surplus had narrowed. This came on a slowdown in the pace of exports which fell sharply during the first three months of the year.

The GDP data could potentially spell a weaker pace of economic activity in the Eurozone with inflation already seen slowing. Besides the Eurozone GDP data, investors will also be focusing on the FOMC meeting. The central bank is expected to keep the Fed funds rate unchanged at today's meeting.

Still, despite the fact that interest rates will be left unchanged, there is strong indication that the Federal Reserve will continue to hiking rates at the next meeting in June. With recent uptick in the U.S. core PCE which has touched 2.0%, the central bank and its officials are likely to maintain a hawkish tone in the markets today.

Based on the above, today's binary trading signal is EURUSD. The currency pair was seen posting strong losses as price action briefly fell to lows below 1.2000 on Tuesday. In the near term, with price trading at the support zone we expect to see a modest rebound.

Therefore, we would purchase daily CALL options in EURUSD for a 21:00 GMT expiry time at 1.1995. We expect to see price posting a modest decline following which the currency pair is expected to close higher on the day.

binary options signal eurusd 02 may 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.