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EUR/USD binary signal - U.S. Retail sales - 15 Sep 2017

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Expiry Time: 
20:00 GMT
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The U.S. department of commerce will be releasing the monthly labor market statistics later today at 1230 GMT. According to the economists polled, retail sales in the United States are forecast to rise 0.1% on a month over month basis while core retail sales are expected to slow, rising just 0.5% on the month. This follows a 0.5% and a 0.6% increase in headline and core retail sales in July.

Yesterday, data showed that consumer prices in the U.S. accelerated in August in what was the biggest increase since early January and February this year. The gains came in both headline and core inflation data. The better than expected figures helped traders to boost some confidence into the U.S. dollar which has been falling significantly against its peers.

A better than expected increase in retail sales data could potentially cement this fact in the run up to next week's FOMC meeting. However, we cannot rule out any surprises in the data. For the moment, the U.S. dollar is seen reacting more to weaker economic data than to positive economic data.

The retail sales figures over the past few months in the U.S. have been largely disappointing. Core retail sales were seen steadily declining for two consecutive months. However, headline retail sales managed to rebound in July, rising 0.6%. Following this strong increase, retail sales in August is obviously expected to pull back and moderate from July's highs.

Based on the above, the binary options signal for today is the EURUSD. The currency pair has been seen pulling back after posting a strong rally that pushed the common currency above 1.205 briefly before falling back. Yesterday, we could see that the EURUSD fell to the support level at 1.1882 and managed to post a consolidation here. This is a strong level of support and we expect to see this hold in the near term.

Therefore, we would purchase daily CALL options in EURUSD at 1.1890 for a 20:00 GMT expiry time. We expect EURUSD to rebound into Friday's session and close higher on the day.

binary options signal eurusd 15 Sep 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.