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EUR/USD binary signal - U.S. Retail sales - 16 Apr 2018

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Expiry Time: 
21:00 GMT
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The economic calendar is light today with only the retail sales data coming out from the United States. The retail sales report is expected to be released at 12:30 GMT for the month of March by the U.S. department of Commerce.

According to the economists polled, retail sales data is expected to rise 0.4% on the month. This comes after the previous month's data showed that retail sales had fallen 0.1%. Retail sales fell for three consecutive months since January 2018 after surging to 0.8% in November last year.

Core retail sales excluding autos are forecast to rise 0.2% on the month, marking the same pace of increase from the month before.

Previously, the weaker than expected retail sales report stoked concerns that consumer spending was weakening amid tighter interest rate policy. However, with the uptick in wages, especially over the past two months, the retail sales report for the month of March could very well signal a rebound in consumer spending on the retail sales.

There is also strong evidence that consumer prices could start to rise at a faster pace. This is likely to prompt consumers to hasten spending which could push the overall retail sales report. However, the inflation data from last month showed a rare decline in gasoline prices. This could also be another factor that could support the retail sales data to the upside.

Based on the above, today's binary options trading signal is EURUSD. The currency pair was seen trading subdued on Friday. The markets opened this morning to the news about the U.S. air strikes in Syria which is likely to keep the risk appetite in check.

Therefore, it is ideal to purchase daily PUT options in EURUSD at 1.2330 for a 21:00 GMT expiry time. We expect to see the U.S. dollar resuming some gains which could result in EURUSD closing lower on the day.

binary options signal eurusd 16 apr 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. 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.