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EUR/USD binary signal - U.S. Empire State Manufacturing - 16 Oct 2017

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Expiry Time: 
20:00 GMT
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The United States Federal Reserve Bank of New York will be releasing the monthly empire state manufacturing index today at 12:30 GMT. This forward looking indicator looks at the developments in the manufacturing sector. According to the economists polled, the manufacturing activity in the New York area is expected to show a reading of 20.3 for the month of October.

In September, the manufacturing activity index rose to 24.4. Similar to the ISM's manufacturing PMI, this regional indicator provides initial insights and feeds into the overall manufacturing activity in the country. In September, data showed that new orders index rose strongly by four points to register a print of 24.9, while the shipments index rose to 16.2.

The data for September showed that there was an overall strong activity in the manufacturing sector as far as the New York area was concerned. This eventually saw the ISM's manufacturing activity rising steadily in September as well.

For October, the index is expected to post a modest decline, but the markets are likely to shrug aside the dip. The regional manufacturing activity index is often considered to be quite volatile therefore there is a big chance of a hit or a miss.

Based on the above, the binary signal for today is EURUSD. The currency pair was seen trading choppy during Friday's session. This came as inflation missed estimates. However, on closer observation, inflation managed to rise from the previous month.

The currency pair is expected to exhibit some sideways price action especially as traders prepare for the ECB's big meeting next week. The markets are expecting the European Central Bank to announce a taper to its QE program. The euro thus remains muted in the near term and ahead of this big announcement.

We expect the downside in EURUSD to continue. Therefore, we purchase daily PUT options in EURUSD at 1.1822 for a 20:00 GMT expiry time. We expect price to extend the declines from late Friday and close lower on the day.

binary options signal eurusd 16 Oct 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.