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EUR/USD Signal - U.S. Trade deficit - 04 April 2017

Signal details
Entry Price: 
1.0650
Close Price: 
1.0667
Direction: 
High
Expiry Time: 
20:00 GMT
Result: 
ITM
How we trade
5/5 of 4 ratings

The U.S. monthly trade balance data will be released today by the department of Commerce as economists polled forecast to see a headline print of -46 billion in deficit. This is slightly lower than the 48.5 billion trade deficit registered in January. The increase in the trade deficit in January came on an increase in the goods deficit of $4 billion.

On a year over year basis, the goods and services deficit rose $5.1 billion or about 11.8% from a year ago. Likewise, the exports rose $13.3 billion or 7.4% from the year ago with imports rising 8.3%. The trade balance data coming up today could prove to be important especially with the U.S. President Trump due to meet with his Chinese counterpart later this week.

Trump had repeatedly mentioned the U.S. trade deficit with countries including China, Japan and Germany and just a week before, he said on Twitter that talks with China will be difficult. Trump has taken it upon himself to reduce the U.S. trade deficit with its major trading partners and has shown keen interest the data which is released monthly.

Meanwhile, data from the Eurozone is relatively quiet with most of Monday seeing the monthly purchase manufacturing index data from the various Eurozone economies. There has been no material deterioration in the PMI's which suggests that recovery is expected to continue, albeit at a moderate pace. Furthermore, the Eurozone unemployment rate that was released yesterday fell to 9.5%, from 9.6% previously.

EURUSD closed bullish yesterday, for the first time since the past four days which saw a consecutive decline in prices. EURUSD fell to a 13-day low at 1.0649 yesterday before recovering to close on a bullish note. Thus, we can expect to see a continuation to the upside in EURUSD.

For today's binary options trading signal, we recommend purchasing daily CALL options at 1.0650 - 1.0670 for a 20:00 GMT expiry time as we anticipate an upside movement in EURUSD today.

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.