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EUR/USD binary signal - US Inflation Rate - 15 Nov 2017

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Expiry Time: 
21:00 GMT
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The monthly inflation report will be released today for the United States for the month of October. According to the economists polled, consumer prices in the U.S. are expected to rise 0.1% on the month. This marks a slower than expected increase on a month over month basis, compared to the 0.2% increase seen in September.

Core consumer prices are however forecast to rise 0.2% on the month, accelerating from the 0.1% increase registered in September. On a year over year basis, inflation rate in the U.S. is forecast to rise 2.0% on the headline and 1.7% on the core.

Combined, consumer prices in the U.S. potentially show that the pace of increase in the inflation rate continues to grow at a very slow pace. Although the Fed looks to the core PCE data, today's inflation figures could no doubt shape the markets about the future pace of rate hikes due to come next year.

Fed officials have signaled their intentions to hike rates at least twice next year, with some of the FOMC voting members preferring to see three rate hikes. This means that consumer prices should potentially rise at a faster pace. Contributing to this hawkish idea is the fact that the recent surge in oil prices could possibly help inflation rate in the U.S. to rise.

For the moment, unless we see a surprise decline in consumer prices, the markets are gearing up for the Fed rate hike this December. The Fed has maintained that with the U.S. economy near full employment, wage could possibly start to increase soon. This is expected to push consumer spending higher which in turn could see consumer prices rising.

Based on the above, today's forex binary signal is EURUSD. The currency pair posted strong gains yesterday, but the momentum is likely to weaken. Therefore, we purchase daily PUT options at 1.1789 for 21:00 GMT expiry time as we expect to see EURUSD closing lower on the day following yesterday's rally.

binary options signal eurusd 15 Nov 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.