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EUR/USD Signal - Eurozone Final CPI - 18 Jan 2017

Signal details
Entry Price: 
1.0680
Close Price: 
1.0638
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
ITM
How we trade
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The U.S. dollar is weaker thanks to comments by Donald Trump calling the dollar too strong. This led to a strong unwinding of the U.S. dollar which fell sharply in yesterday's trading session. The EURUSD is seen maintaining gains as the single currency rose to a 6-week high yesterday at $1.0718. Price action since early Asian trading session today has shown a rather weaker EURUSD which is currently retracing some of the gains made from yesterday. On the economic front, the Eurozone final inflation figures will be coming up for release later today.

Economists are forecasting the Eurozone headline inflation to rise 1.1% while core CPI is forecast to rise 0.9% on a year over year basis, according to the preliminary inflation estimates released few weeks ago. A confirmation or a potential bullish beat on the estimates could keep the gains on the euro limited as later, the U.S December inflation report will be released. Purchase EURUSD daily PUT options near 1.0680 for a 21:00 GMT expiry time as EURUSD could see a short term correction.

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.