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EUR/USD binary signal - U.S. PPI data - 15 Feb 2018

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Signal details
Entry Price: 
1.2434
Close Price: 
No Trade
Direction: 
Low
Expiry Time: 
21:00 GMT
How we trade
4.5/5 of 6 ratings

It is a rather busy day for the economic data from the U.S. which could potentially keep the U.S. dollar rather busy. The day starts off with the producer price index figures for January. The PPI data will likely show whether there has been any increase in the costs of materials at the factory gate.

Later in the day, some forward looking economic indicators will show how the U.S. manufacturing industry has been faring for the month of February. Data includes the Empire State Manufacturing index. Forecasts show that manufacturing activity might have accelerated to 18.2 in February, up from 17.7 in December last year.

Manufacturing activity in the U.S. has been on a rebound supported by the tax cuts from Trump and the renewed optimism in the markets. Furthermore, the uptick in the global trade data also contributes to the overall growth in the industry, not just in the U.S. but globally as well.

The data continues to cover other indicators which include the Philly Fed manufacturing index which is also expected to show a stable pace of growth in the manufacturing sector. Combined, these forward looking indicators will point to how the ISM manufacturing PMI will reflect the growth.

Based on the above, today's binary signal is EURUSD. The currency pair was seen reversing the previous week's losses. However, the stronger than expected inflation data from the U.S. yesterday managed to stall the gains.

The higher inflation data now strengthens the view that the Fed could be moving ahead with another rate hike as early as March. This could potentially see the U.S. dollar strengthening in the near term on the speculative decision.

Technically, the short term correction in EURUSD looks to be stalled for now. Therefore we would purchase daily PUT options at 1.2434 for 21:00 GMT expiry time as we expect the currency pair to close lower on the day.

binary options signal eurusd 15 feb 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.