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EUR/USD binary signal - U.S. ISM Manufacturing PMI - 03 Jul 2017

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20:00 GMT
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The United States Institute of Supply Management (ISM) will be releasing its monthly manufacturing PMI data. According to the economists polled, the ISM manufacturing PMI is expected to rise to 55.0 from 54.9, which is a 0.1 point move from May. The data will be released at 1400 GMT and will impact the U.S. dollar.

With the sentiment currently down in the U.S. dollar and investors dovish on the dollar amid hawkish talk from ECB and the BoE officials the U.S. dollar has taken a strong beating last week. Therefore, a positive ISM data today could help to boost the sentiment a bit.

The manufacturing activity has been in a steady decline over the past few months after the index touched a new high in February this year. The decline in the manufacturing sector was also seen by weaker payrolls report and slower consumption and spending.

Last week, the data showed that the personal income and spending rose just 0.1% on the month. This was a significant slowdown, especially for personal income which was revised down 0.3% previously. The Core PCE was also seen rising just 0.1% adding to the weakness.

However, as far as the regional indexes are concerned, the data was uplifting. Chicago PMI released last week jumped from 59.4 to 65.7 which was a strong rebound in the index. The data could suggest that the ISM could possible come out stronger than expected.

Based on the above factors, our recommended binary option signal is EURUSD. Following last week's strong gains, the EURUSD is likely to see some consolidation if not a short term correction to the downside.

EURUSD closed bearish on Friday which comes after three consecutive days of gains. Therefore we expect the U.S. dollar to make a comeback and as a result EURUSD could turn weaker.

We would purchase daily PUT options in EURUSD at 1.1400 for a 20:00 GMT expiry time as we expect to see EURUSD close lower on the day.

binary option signal eurusd 03 Jul 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.