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EUR/USD binary signal - U.S. Core PCE data - 29 Jan 2018

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Signal details
Entry Price: 
1.2470
Close Price: 
No Trade
Direction: 
Low
Expiry Time: 
21:00 GMT
How we trade
5/5 of 5 ratings

The U.S. Core PCE Price index data will be released today at 13:30 GMT. Alongside the core PCE data, personal income and spending data will also be coming out. Combined, the above data will shed light on the state of the U.S. household income and spending details that could foretell how the U.S. economy has been performing.

The data will also shed light on the state of the consumer prices as well. The PCE price index data is a closely watched indicator by Fed officials and gains higher prominence than the regular CPI data that is released.

The core PCE data will be covering the period of December. Economists forecast that core PCE rose 0.2% on the month in December. This would mark a slight acceleration from 0.1% registered in November. Real PCE was seen rising 0.4% in November while the headline PCE price index was seen rising 0.1%.

On a year over year basis, core PCE price index is expected to rise 1.7%. This would mark a slower pace of increase compared to November's reading of 1.8%.

Personal income is expected to remain steady, rising at the same pace of 0.3% in December, as it did in November. Spending data is expected to show a 0.5% increase, slightly slower from the 0.6% increase seen in the previous month.

The core PCE, personal spending and income data comes ahead of the Fed's meeting this Wednesday. No changes are expected at this week's meeting but a positive beat on the estimates as far as inflation, spending and income is concerned could boost the prospects for a hawkish forward guidance from the Fed.

Based on the above, today's forex binary signal is EURUSD. The currency pair rose to fresh 4-year highs last week but settled lower by Friday's close. Current attempts to post a rally could be met with the resistance level at 1.2470.

Therefore, we are looking to purchase daily PUT options at 1.2470 for a 21:00 GMT expiry time. We expect EURUSD to rally to this level on an intraday basis before closing lower on the day.

binary options signal eurusd 29 jan 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.