Flash inflation and preliminary GDP figures coming up for the Eurozone
The euro was trading volatile yesterday first falling to a 7-day session low before recovering by mid-U.S. trading session. The volatility came with a mixed of economic reports and market jitters on the Trump administration and the policies. The pace of economic releases only continues to increase as the markets edge closer to a new trading month tomorrow.
Looking ahead, the Eurozone's flash inflation and GDP estimates will be the focus for the single currency today
Economists have penciled in a forecast of 1.5% on the headline inflation while core inflation is expected to increase 0.9%, the same pace as the month before. Yesterday, Germany's preliminary inflation report showed that although consumer prices increased, most of the gains were due to higher oil prices which could mean that there is still no evidence of proper inflationary pressures in the Eurozone.
Following the preliminary eurozone inflation data, the flash GDP figures for the fourth quarter will be released. Expectations call for a 0.4% increase on the quarterly GDP growth rate for the euro area.
The euro continues to struggle between the U.S. dollar which has shown to be vulnerable to Trump's protectionist policies but at the same time, influenced the U.S. economic data, which understandably brings in the volatility on the EURUSD currency pair.
How to trade binary?
Despite the choppy trading yesterday, EURUSD remains biased to the downside, in anticipation of the slew of economic releases starting tomorrow. Most of the economic releases are likely to be positive for the U.S. dollar anyway.
Currently, 1.0700 has turned into a key level of resistance that the single currency is looking to break out from. However, it is unlikely to expect further gains in EURUSD, thus warranting daily PUTs around 1.0700 – 1.0715 for a 21:00 GMT expiry time.
Target price: 1.0715
Expiry: 21:00 GMT